Technical analysis: key levels for gold and crude

Gold and Brent have both been moving lower. However, with Brent having already broken key support, it is more advanced in its bearish story. 

Gold approaching key support level

Gold reversed into a 76.4% retracement yesterday, following on from a sharp rally into $1341 resistance on Tuesday.

The inability to break above $1341 holds a more uncertain tone, with a break below $1317 or above $1341 providing greater certainty on market direction. However, for the near-term it makes sense to look for whether the price can break below the $1322 low. Should that occur, it would necessitate a break below trendline and Fibonacci support, pointing towards a possible bearish reversal for gold.

Brent breaking lower after inventories sell-off

Brent has been moving sharply lower off the back of yesterday’s US crude inventories figure, with the price dropping below the crucial $64.04 support level.

This negates the recent bullish outlook, with further downside now expected unless we see a break back above $66.09.

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