Technical analysis: key levels for gold and crude

Gold shows tentative signs of a resurgence following a move into trendline support. Meanwhile, the descent in Brent begins to slow, bringing a chance of a break from the current downtrend.

Oil pump
Source: Bloomberg

Gold regaining ground from trendline support zone

Gold has been recapturing ground following a fall into the confluence of two trendlines around $1267. Yesterday saw a move lower, providing us with a near-term swing high ($1282) that needs to be broken to give us a signal that we could be in for a more protracted period of upside in gold.

With that in mind, watch for either a break below $1267, or above $1282 to provide the signal of where we are likely to go from here. 

Spot gold chart

Brent weakness could be coming to an end

Brent has been selling off from the crucial $58.48 level this week, in a reversal from a long-term historical high. With that in mind we have been trying to decipher how long this downside could last. We are finally seeing some signs that this period of weakness could be over, with the descent slowing over the past 24 hours.

Should we see a break higher, an hourly close above $56.35 would signal a bullish shift for Brent. That being said, we do continue to see lower highs and lows, which bring into play the potential for a move lower from trendline resistance now. As such, the downtrend remains intact for now.

Brent oil chart

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