Technical analysis: key levels for gold and crude
Both gold and Brent have been attempting to regain losses. However, with resistance up ahead, the bearish trend is not over quite yet.
Gold consolidating after failed attempt to break lower
The gold downtrend came into question last week, with the latest leg lower failing to provide a new lower low. The flatlining lows of $1266 point towards a potential bullish phase coming into play.
However, we will need to see a rise through $1287 to provide that kind of sentiment. Until then, the market is consolidating around an important zone of resistance which will be watched closely to see whether we break lower once again or not.
Brent turning lower to follow-up on recent breakdown
Brent managed to rebound yesterday, following on from a sharp sell-off in the wake of US-China trade war fears. This recovery has taken us back to the $71.44 peak set on Friday.
However, we are seeing the sellers come back in again, and given the fact that we saw a break below the $70.49 swing low, another leg lower looks likely. A break through the $72.76 level would negate this bearish notion, yet until that happens, further downside looks likely.
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