Technical analysis: key levels for gold and crude

Gold and Brent gain ground, yet a bearish reversal looks likely considering the recent wider breakdown. 

Gold consolidates after breakdown

Gold has been consolidating in the aftermath of last week’s break below the crucial $1236 support level.

That level is likely to remain crucial, providing resistance should we see further upside. Ultimately this period of moderate gains seems unlikely to last, with a break above $1266 required to bring a wider bullish outlook. Until then, a turn back into the downtrend seems likely before long.

Brent retracement looks likely to falter

Brent has been regaining ground, with the price posting a deep retracement within the 61.8% and 76.4% retracements.

This period of upside looks likely to be a precursor to further downside, with a continuation of the double top formation likely. With that in mind, a bearish outlook is in place, with a rally above $75.87 required to negate this bearish view.

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