Technical analysis: key levels for gold and crude

Gold and Brent are regaining ground, yet questions remain over whether we are simply due another leg lower or not.

Gold regaining ground from trendline support

Gold has been turning higher following a fall into trendline support. Coming off the back of a ABC retracement into that ascending trendline, there is a good chance that this move is going to see us rally through the $1243 mark.

However, at the same time we could be looking at another potential retracement of the sell-off from $1237. While near-term upside looks likely, watch out for whether we respect Fibonacci resistance to tell us more about whether the selling is over or not.

Brent attempting to regain ground following recent downturn

Brent has been gradually regaining ground following a major downturn of late.

The rebound that we are seeing looks likely to be fleeting, with a move back into trendline resistance a distinct possibility. Essentially this rebound would only provide a bullish view with a rally through the $71.93 swing high. Until then, this rebound looks likely to provide another selling opportunity.

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