Technical analysis: key levels for gold and crude

Gold continues to consolidate after prior losses, while Brent turns higher from a key support level.

Gold consolidating after 76.4% bounce

Gold has failed to really follow through on its initial bounce from the 76.4% retracement, with the price unable to rally through the $1349 swing high yesterday.

A break up above that level would provide greater confidence of a move higher, but until that happens we remain susceptible to another move lower. That being said, given the wider uptrend, a bullish resurgence still seems likeliest from here.

Brent rebounds from crucial support level

Brent has managed to rebound sharply from the $68.03 mark, following a downbeat start to the week. The ability to break through $70.85 would signal a continuation of the wider bullish trend.

However, for now there is likely to be further upside for the short term, where the next resistance level comes in at $70.11. It is worth noting that the creation of flat lows raises the likeliness of a head and shoulders formation, and thus the possibility of this being a retracement prior to another sell-off should be considered.

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