Gold and Brent consolidate as we await next breakout
Gold and Brent are in consolidation mode, with both likely to break higher before long.
Gold consolidates as we await next breakout
Gold has been in consolidation mode over the past month, with the price trading within the $1382 and $1439 zone. With lower highs and higher lows being formed, we have the bare bones of a symmetrical triangle.
Thus, a break through $1427 would look to bring a more bullish picture, with a rise above $1439 bringing confirmation that another leg higher is due. However, until that happens there is a good chance we will continue to consolidate, with a move lower coming on a break below $1407.
Brent continues to retrace after recent declines
Brent has been drifting lower off the back of a sharp rise last week. The shallow nature of these declines points towards a likely bullish break before long.
However, we will need to see a break through the first swing high to bring about a bullish outlook. That is currently $67.23, yet that could change if we see another leg lower in the short term. As such, further downside looks a distinct possibility for a deeper retracement, with a rally through the prior swing high providing a bullish breakout picture.
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