Technical analysis: key levels for gold and crude

Gold and Brent are beginning to look like we could see a move back towards the downside, in accordance with the wider outlook. 

Oil figure
Source: Bloomberg

Gold looks to be turning back onto bearish path

Gold has been turning lower following the rally into Fibonacci resistance last week, with the bearish medium-term outlook coming into play.

With that in mind, any rally from here looks like a potential selling opportunity as long as the price does not break above $1270. Watch out for the Fibonacci levels as potential areas for shorts.

Gold chart

Potential top for Brent forming

Brent is trading within a symmetrical triangle formation, with lower highs accompanying the higher lows. This is not necessarily a bearish reversal pattern, yet the longer term outlook for Brent points towards a potential move lower in the near future.

With that in mind, shorts are preferred unless we break above $53.00. That being said, for greater confidence, watch out for an hourly close below $51.45 to provide a bearish signal.

Brent chart

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