Technical analysis: key levels for gold and crude

Gold continues to drift lower, but with Fibonacci support in play we could see a move higher from here. Meanwhile, Brent continues its ascent following last week’s bullish breakout. 

Oil
Source: Bloomberg

Gold keeps drifting lower

Gold is continuing its decline following last week’s weakness. The lack of any notable reaction to the intercontinental missile test from North Korea last week, is a potential warning sign for gold. However, given the trend we currently have in place, the 76.4% and trendline support confluence looks like an interesting area to look for longs.

A break below $1298 would negate the current bullish outlook. However, with a clear uptrend in place here, it looks like we could see the bulls come back into play once more. 

Gold chart

Brent continues to gain above key resistance

Brent broke through a crucial resistance zone on Wednesday, providing a more bullish outlook for the medium term. For now, we have seen the price pull back into the crucial $54.87 level, testing it as new-found support.

A break back below $54.73 would point towards a short-term period of weakness. However, until then, we look likely to continue this current ascent.

Oil chart

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