Technical analysis: key levels for gold and crude

Gold and crude remain within a short-term downtrend, and despite short-term respite, it looks like that trend could persist.

Oil pump
Source: Bloomberg

Gold attempts to regain ground

Gold managed to break below the important $1264 support yesterday, in a continuation of the weakness seen over the past week. The price is currently attempting to regain ground following that sell-off, yet with a bearish rising wedge being formed, there is a good chance that this upside is short-lived.

An hourly close below $1261 would provide a reliable signal that we are set for further downside. Alternately, given the strong move lower yesterday, a bounce is certainly a possibility, with the Fibonacci resistance levels subsequently coming into view.

Brent rallying back towards trendline resistance

Brent is attempting to push higher this morning, with the price moving back into the top of a recent descending channel formation.

Given the wider downtrend in play recently, there is reason to believe we will turn lower once more, with a break through $53.00 required to provide a more bullish short-term view. Until then, the downtrend remains intact and it would not be surprising to see the price turn lower again. 

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