Technical analysis: key levels for gold and crude

Gold and Brent show signs of a short-term resurgence. However, will the recent downtrend remain intact for both markets?

Gold pullback looks like short-term retracement

Gold has managed to rebound from the crucial $1306 support level, with the creation of higher highs and higher lows pointing towards a possible extension of these recent gains.

With the price moving lower this morning, there is a chance we are seeing a retracement before we push higher once again. As such, watch out for Fibonacci and trendline support as potential buying opportunities. A break below $1311 would be required to negate the expectations of another move higher over the short term.

Will the Brent rally signal a bullish shift?

Brent has been selling off heavily over the past week, as it falls back from the long-term resistance zone between $69.23 and $70.00.

For this recent downtrend to continue, we need to see the continued creation of lower highs and lower lows. As such, a bearish outlook remains in play unless we see a rally up through $64.57. Should we see such a break, it is likely we would be looking at a retracement of the wider sell-off from $70.00.

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