Technical analysis: key levels for gold and crude

Gold and Brent continue their consolidation, with potential reversals taking their time to work themselves out.

Oil
Source: Bloomberg

Gold looks to be turning back onto bearish path

Gold is regaining ground this morning, following last week’s strong sell-off. With the price having moved into the 76.4% retracement of the June-July sell-off, it looks likely we are set for a period of downside.

This current rebound looks like a short-term move higher, with selling preferred, as long as we do not see a break back up above $1271. A move back into the $1265 region would look like an attractive selling opportunity considering trendline resistance.

Brent continues to trade within triangle

Brent remains within a symmetrical triangle formation, with the price rallying into the top of the pattern this morning. This is certainly an area where we could see a market top, but the breakout from this pattern should give us more confidence of the directional bias.

With that in mind, an hourly close above $53.00, or below $51.38 would provide the key signs of where the price could go from here.

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