Brent crude price and gold price regain ground after recent losses
Brent crude and gold find a bid once more, but with crude production so higher, there are still questions over how long this could last.
Gold on the rise, as we push into key resistance
Gold has managed to rebound from the 76.4% Fibonacci support level around $1666. That looks like sending us back into fresh highs, with the uptrend of the past month providing us with a clear bullish outlook.
Nevertheless, the $1720 resistance level is worth watching for the short term given the existence of the 76.4% Fibonacci retracement. A rise through there looks likely to provide us with a continuation of the uptrend, with a break through $1739 and $1747 likely. To the downside, a break below the $1660 level would provide us with a possible bearish reversal signal.
Brent easing back after rally into trendline resistance
Brent has been regaining ground after the incredible sell-off that dominated the first half of the week. That rally has taken us into trendline resistance which is currently being respected as the price starts to turn lower once again. The pertinent question is whether this period of optimism is simply a precursor to further declines.
Certainly, a break below the $22.70 level would bring about a more bearish outlook once again. However, until then there is a chance we could see the bulls come back in around Fibonacci support. It is worthwhile noting that without any major action to curb overproduction, there is little reason to expect the prices to head drastically higher. However, with US Secretary of the Treasury Steven Mnuchin calling for $30.00, there are many who believe we could be seeing some form of supportive announcement in the near future. From here, the question is whether we see a break below $22.70 or not.
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