Technical analysis: key levels for gold and crude

Gold is drifting lower, yet with the recent uptrend, another leg looks likely. Meanwhile, Brent has broken through a key resistance level, highlighting the possibility of a bullish breakout.

Oil pump Source: Bloomberg

Gold drifting lower within recovery phase

Gold has been clawing back some of the lost ground over the past week, with the price moving into the 200-day simple moving average (SMA) resistance. That moving average has capped upside for the time being, yet this looks like a retracement before we post another leg higher.

While the wider picture does point towards a likely bearish reversal before long, we would need to see a break below $1291 to signal the continuation of that bearish reversal story. Until then, another leg higher looks likely, with further short-term downside simply looking like a better buying opportunity.

Gold price chart

Gold price chart

Brent rallies through key breakout level

Brent has managed to rally through the $67.82 resistance level this morning, providing confirmation to the similar move that happened in WTI yesterday. This points towards further upside to come, with a bullish view in place unless we see a break below $66.32.

From a wider perspective, this looks like the beginning of a strong surge for crude prices, and with the price having broken out of its recent consolidation, we are hoping to see the bullish bias really take hold in the coming days.

Brent price chart

Brent price chart

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