Technical analysis: key levels for gold and crude

Gold looks set for further losses, yet with crude breaking higher yesterday, the picture is somewhat less clear for the black stuff.

Oil refinery plant
Source: Bloomberg

Gold retraces into trendline and Fibonacci resistance

Gold has rallied into the confluence of both trendline resistance and the 76.4% Fibonacci retracement, set within a downtrend that has been in place over the week.

The wider long-term picture is also bearish and as such, further losses are expected from here. With that in mind, a move back below $1128 looks likely, with a bearish outlook remaining in play unless we see a break back above $1134.

Is the sell-off set to continue for Brent?

Brent crude managed to rally back to the 70% retracement yesterday despite early losses. This brings us into a more unpredictable phase, with a break back above $58.83 providing a more bullish outlook.

Conversely, there is a good chance that we have simply been retracing the fall from $56.34, with further losses yet to come.

WTI turning lower following rally

WTI is breaking lower from a 61.8% retracement yesterday, with price seemingly breaking lower from a sideways channel this morning. We would need a break back above $53.82 to provide confidence of another move higher for WTI.

However, given the break through $52.80 resistance, a break back below $52.16 would create a more confident bearish view.

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