Technical analysis: key levels for gold and crude

Gold is attempting to rebound from the bottom of a long-term range, with an overnight retracement providing potential buying opportunities. Meanwhile, the Brent price continues to surge, hitting a new three-year high.

Gold pullback could bring buying opportunity

Gold has been pulling back after a rebound from the bottom of a wider range between $1307 and $1367. With the price seemingly starting to move into a more bullish phase, this pullback looks like it could be a short-term move before we see gold move higher once again.

Given that the price is around the 76.4% retracement, there is a good risk to reward associated with long positions around here. A fall below $1304 would negate this bullish view, but look for a break below $1301 in particular to potentially pave the way for a bearish breakout.

Brent breaking higher yet again

Brent is surging higher yet again, following on from a move back into $76.43 support yesterday. The respect of that support level paved the way for further gains, and provides a bullish outlook that holds as long as we remain above yesterday’s low.

A fall back below $76.43 would point towards a wider retracement of the rally from $72.39. However, for now, it looks likely we will see further upside come into play. 

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