Technical analysis: key levels for gold and crude
Gold looks set for another bearish turn following a recent head and shoulders formation. Meanwhile, Brent has reached a crucial support zone after Friday’s decline.
Gold head and shoulder points towards further downside
Gold has been rising over the past week, following on from a wider breakdown which saw the price fall below a crucial area of support.
That $1277-$1281 zone provides us with a head and shoulders formation evident on the daily time frame. With that in mind, the rally seen of late looks like another precursor to a bearish turn. As such, further upside could be likely on the near term, yet it looks like we will see the market break lower once more unless we see a rise through $1310. A fall below $1273 would signal a more bearish picture over the near term.
Brent falls into key support zone
Brent fell sharply on Friday after the US President Donald Trump announced his approach to the Organisation of the Petroleum Exporting Countries (OPEC) with a plea to push prices lower.
This drop has taken us into a support zone which encompasses both a cluster of previous lows and the ascending trendline dating back to December. With that in mind, it makes sense to look out for whether we can break below $70.53 to spark a new bearish phase for the market. Until then, we could see bullish move from here.
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