Technical analysis: key levels for gold and crude

Gold selling persists as it approaches a crucial support level, while Brent shows some signs of a potential resurgence.

Gold bar
Source: Bloomberg

Gold falling into crucial support level

Gold continues to tumble, after peaking around $1300 last week. While up until now things have looked like a potential retracement, a break below $1259 would signify a bearish shift for this market.

As such, the ability or inability to break below $1259 will shape the outlook for the rest of the week.

Is Brent beginning to look more bullish?

Brent has managed to break through trendline resistance this week, with the price remaining above the 200-day simple moving average (SMA) for the longest time since this recent downtrend began.

That points towards the potential for a trend shift, yet we would need an hourly close above $50.36 to confirm that bullish reversal. 

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