Technical analysis: key levels for gold and crude

Gold’s decline has halted for now, while Brent shows signs of a bearish phase ahead.

Oil pump
Source: Bloomberg

Gold consolidates after recent decline

Gold has the potential of another breakdown, with the price falling below some notable support levels. There is a possibility we could see another rebound in the short term, due to the price moving largely sideways. 

However, as long as we do not break through the $1289 level, any short-term upside is likely to be fleeting, with a move back below the $1270 mark pointing towards a possible fall into the next $1263-$1265 support zone.

Brent moves back into key support level

Brent has sold off sharply since the Organisation of the Petroleum Exporting Counntries (OPEC) announcement last week, with the price moving into the $62.15 support level.

A break below that level would point towards a possible move back into $61.04. Crucially, with the price failing to break above $64.57, there is a chance that we are seeing the beginning of the end for this crude rally, with a move back below $61.04 forming a bearish double top pattern.

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