Technical analysis: key levels for gold and crude

Both gold and Brent have retraced into the 76.4% Fibonacci level, yet with uptrends in play, we could see a bullish rebound before long.

Gold turning higher from 76.4% retracement

Gold has started turning higher, following a deep 76.4% retracement.

The wider uptrend points towards a possible bullish revival from here, where the oversold stochastic and a potential reversal in direction on the moving average convergence divergence (MACD) histogram all add to the notion that we could turn higher from here. With that in mind, a bullish outlook remains in play, unless the price falls back below $1324 support. 

Gold chart

Trade idea: long gold 30/01/18

 

Brent could be set for bullish reversal after recent retracement

Brent has sold off into the 76.4% retracement overnight, with the wider uptrend raising the chances of a bullish move higher from here.

The depth of this retracement means we are looking at a strong bullish risk-to-reward profile, where a break below $68.03 would be required, to negate any bullish short-term sentiment. 

Brent chart

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