Technical analysis: key levels for gold and crude

Gold falls into a crucial confluence of support, while Brent rallies into a key resistance level. 

Oil
Source: Bloomberg

Gold back at trendline and Fibonacci support

Gold has sold-off into the crucial $1271 level, which sees the confluence of an ascending trendline and 76.4% retracement. There is a strong chance that we are seeing a wider bullish reversal, given the bounce seen earlier in the month. However, for now, we have no bullish signs in the short-term.

As such, a move back up above $1284 would provide that bullish outlook. Until then, this confluence of support looks like an interesting area for potential longs. A break below $1261 would negate the potential for a bullish rebound from here.

Brent rallies back into crucial resistance level

Comments from Saudi Arabia managed to push Brent back into the crucial $58.48 resistance level yesterday. It is that level which is now going to be the key determinant of the day’s outlook, where a convincing break through $58.48 would set us up for another protracted period of upside.

However, should we fail to see the break of that level, this would be the area where Brent would likely turn lower once more.

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