Technical analysis: key levels for gold and crude

Both gold and Brent fall lower in early trading. However, while Brent enters bear market territory, the story for gold is very different, with another leg higher likely before long.

Oil rig
Source: Bloomberg

Gold retraces following breakout

Gold is turning lower this morning, following the sharp appreciation earlier in the week. Given the triangle breakout and expectation of easing from the Bank of England next week, this bull trend is likely to come back into play before long.

Until then, watch out for the 61.8% ($1327) and 76.4% ($1323) Fibonacci support levels to provide the backstop to this pullback. As such, while we are likely to see further downside in the short-term. This is likely to abate before long, with another move higher likely to occur.  

Brent enters bear market territory

Brent provided us with yet another move lower yesterday, continuing its incredibly consistent descent. We are looking for this clear trend to continue, and as such a bearish view remains in place unless we see an hourly close above $43.37. 

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