Technical analysis: key levels for gold and crude

Gold continues to move higher, following a bounce from trendline support. Meanwhile, Brent crude is now trading in a key reversal or breakout zone.

Gold bars
Source: Bloomberg

Gold appears to have bottomed out

Gold has been moving higher in a convincing manner since falling into a trendline confluence at around $1267 last week. The subsequent move up has seen new higher highs formed, with the break through $1290.

We have since seen another higher created this morning, following a break above $1294. As such, further upside looks likely from here, as long as the price does not fall below $1284. 

Is the Brent rally a retracement or reversal?

Brent has rallied into the 76.4% region recently, following on from the downtrend of recent weeks. The ability to break through the key $57.19 swing high is going to be an important determinant of whether this recent pullback is over or not.

As such, watch out for whether Brent reverses lower (to continue this downtrend), or rallies through $57.19 (to resume the long-term uptrend).

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