Brent crude and gold likely to reverse countertrend moves
Countertrend moves from both Brent crude and gold seem very unlikely to continue.
Gold gains unlikely to last
Gold is gaining ground after sharp declines yesterday, set within a wider bearish downtrend that has been in play for a week.
While we are gaining ground this morning, the standard deviation channel highlights the unconvincing slope here. That slow recovery points towards a likely break lower before long. With that in mind, a bearish outlook remains unless we see a break through the $1463 swing high.
Brent crude retraces after recent rally
Brent Crude has been pulling back since yesterday’s peak of $63.62, with the price falling back into the $62.50 support level.
Ultimately, this looks like a retracement of the wider rally from $62.03, with another leg higher looking likely before long. With that in mind, while we could see short-term losses, a bullish outlook is in play unless we see a break below the $62.03 low.
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