Brent Oil and Gold with Legitimate Bullish Occasions

On the last day of the week we’ll focus on 3 of the most popular commodities; Brent, Gold and Natural Gas. Brent Oil and Gold are moving up, despite a stronger USD, which can be seen on the chart of the Dollar Index, more often a higher USD leads to a decline in oil and gold. On Thursday we saw mid-term buy signals, coming from very detailed technical patterns, on both commodities. Let’s take a deeper look.

Let’s start with Brent which has been moving up since its April 22^nd low. So far, the commodity’s price has had 3 nice trend-continuation patterns, the last one being a pennant. The price broke the upper line of this formation on Thursday which can be considered a legitimate mid-term buy signal. This bullish view is additionally strengthened by the breakout of the horizontal resistance on the 30 USD/bbl level.

Gold is in a similar situation with a nice uptrend which was recently paused by a big triangle pattern. This formation ended yesterday with a breakout to the upside. After the breakout, the price moved up and stopped for a small brake forming a smaller pennant. As seen in Brent Oil, this kind of formation usually results with a breakout to the upside, and our sentiment for gold is also positive.

Lastly, we’ll look at Natural Gas, a newbie to our analysis. The price ended the correction-equality pattern giving a strong sell signal. The price bounced from the 50% Fibonacci level along with a false breakout above the 2.07 resistance level. Last but not least, the price broke the mid-term up trendline confirming a negative sentiment.