Gold price and Brent crude oil price at risk of another bearish shift

Gold and Brent crude showing signs of potential impending weakness despite recent gains.

​Gold showing signs of weakness following rebound

The gold rally has been coming under pressure following the sharp decline below $1488 on Tuesday. With the price rallying into the 76.4% Fibonacci resistance level since, we are starting to see a bearish picture emerge.

The failure to maintain higher lows adds another string to that bow, with the price having declined below the $1509 low. That intraday double-top formation brings about a heightened chance of a breakdown from here. As such, a bearish short-term picture is in play, with a break through the overnight peak of $1524 required to bring about a more positive view.

Brent crude at risk of another leg lower

Brent has seen huge volatility throughout the course of the week, with the price rebounding from $58.00 to $61.50 on Tuesday, only to reverse that just a day later.

While we have seen the price rise from that key $58.00 level overnight, the gradual nature of this recovery points towards a potential breakdown before long. Watch out for a break below the $58.63 level as a bearish confirmation. ​

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