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Technical analysis: key levels for gold and crude

Crude and gold look set for further upside. While Brent has posted a strong rally from a falling wedge, gold needs to turn higher amid an overnight period of weakness.

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Gold rebounds comes under pressure

Gold has been drifting lower since yesterday’s early push higher, with the price coming close to testing the 76.4% support level at $1254.

The wider context shows a strong potential for a rebound from this recent push higher, yet we need to remain above $1251 to provide a continued bullish theme. As such, a bullish outlook remains, but a break below $1251 would raise the likeliness of a challenge of the critical $1236 support level.

Gold price chart

Brent breaks higher from wedge pattern

Brent has managed to rally through the $78.42 swing high this morning, confirming the bullish breakout from a falling wedge pattern.

This looks likely to set up a rally into the $80.49 support level, with $79.54 the first hurdle to overcome. 

Brent price chart

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