Brent crude and gold likely to reverse countertrend moves

Countertrend moves from both Brent crude and gold seem very unlikely to continue.

​Gold gains unlikely to last

Gold is gaining ground after sharp declines yesterday, set within a wider bearish downtrend that has been in play for a week.

While we are gaining ground this morning, the standard deviation channel highlights the unconvincing slope here. That slow recovery points towards a likely break lower before long. With that in mind, a bearish outlook remains unless we see a break through the $1463 swing high.

Brent crude retraces after recent rally

Brent Crude has been pulling back since yesterday’s peak of $63.62, with the price falling back into the $62.50 support level.

Ultimately, this looks like a retracement of the wider rally from $62.03, with another leg higher looking likely before long. With that in mind, while we could see short-term losses, a bullish outlook is in play unless we see a break below the $62.03 low.​

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