Technical analysis: key levels for gold and crude

The gold rebound is slowing, with an early pullback bringing questions over its longevity. Meanwhile, Brent prices tumble into a key support level.

Oil
Source: Bloomberg

Gold consolidating after recent gains

Gold is drifting lower after failing to break through the $1240 peak set on Tuesday. This points towards a potential breakdown, if we move below $1225.

However, until that happens, we are likely to be forming another part of a slower bullish story, with further upside expected before long.

Brent declines into key support

Brent has dropped further following the news that Saudi Arabia is set to pump more oil going forward.

The bullish story is unravelling, and a break below $75.56 would provide greater confidence that this recent downtrend will have further to run. As such, watch for a four-hour close below $75.56 to provide a bearish continuation signal.

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