Technical analysis: key levels for gold and crude
Brent and crude are back on the same page, with gains in gold likely to be followed by Brent as crude prices look set for bullish surge.
Gold drifts lower after rally into Fibonacci resistance
Gold has been declining since the sharp rally into the 76.4% retracement level at $1300. We would need a break through $1310 to provide a wider bullish outlook for gold.
However, despite the pullback we are currently seeing, there is a good chance that we will see another leg higher when looking at the sharp ascent and subsequent gradual decline. That points towards a flag-type scenario, with a rally through $1301 pointing towards another bullish phase coming into play from here. Until then, the price could continue to drift lower.
Brent rebounds from trendline support
Brent is on the rise once again, with the price moving towards Monday’s peak of $72.16. A break through that level would continue the bullish reversal pattern that has been emerging of late.
With the rise through $71.60 taking place last week, it looks likely that we are going to see further upside to come. A break below trendline support and the $69.33 swing low would be required to negate this bullish outlook.
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