Brent crude price slumps, while gold price breaks through resistance
Brent crude drops below key support to bring bearish outlook. Meanwhile, gold breaks through resistance to bring short-term bullish view.
Gold breaks resistance to signal further upside to come
Gold managed to rise through the $1474 resistance level yesterday, bringing a new bullish signal with it. This does look like a retracement, yet the depth of this move remains to be seen.
For now, further upside looks likely, with the 61.8% Fibonacci level providing a potential area of resistance. However, given that this is perceived as a retracement, the bears are likely to come back into play before long.
Brent crude breakdown points towards further losses to come
Brent slumped sharply in response to a higher than expected inventories figure earlier in the week. We have seen price fall through both trendline and $60.42 support, signaling an end to the uptrend seen since the beginning of October.
With this in mind, further downside is likely before long, with short-term upside seen as a selling opportunity. Only with a break through $63.15 would that bullish trend come back into play.
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