Technical analysis: key levels for gold and crude

Gold has dropped back into trendline support, while Brent attempts to push higher off the back of recent declines. 

Gold back into trendline support  

Gold continues to consolidate around trendline support, with yesterday’s rally once again falling short around the 76.4% retracement at $1303. 

The ability to break above that level, or below $1289, will provide us with the key determinant of direction from here on in. Given the previous respect of this trendline, there is a good chance we will see another move higher in the short term. However, the continued respect of the 76.4% retracement highlights that this period of sideways price action could yet prove to be a precursor to another leg lower.

Brent attempts to arrest the recent decline

Brent has managed to post a short-term rebound, following a decline that has been seen as a continuation of the recent period of downside.

This wider move does generally look like a multi-stage retracement before we head higher once more. However, for now there is a good chance that any upside falls short around trendline resistance, which will continue the bearish pattern seen over the past month. A break above $79.17 would bring the bullish view back into play.

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