Technical analysis: key levels for gold and crude

Both gold and Brent have broken key support levels, with further downside looking likely from here.

Another leg lower for gold following breakdown

Gold has been selling off sharply since breaking the critical $1236 support level earlier in the week. That provides us with a medium to long-term bearish outlook.

For the near term, we can see that the somewhat gradual decline seen before breaking $1236 has given way to a more clear-cut downtrend. As such, further downside is expected, with a break above the swing high of $1228 required to negate that short-term trend.

Brent turning lower from retracement

Brent provided a rebound yesterday, with the market attempting to regain ground following a sharp decline at the start of the week.

That sell-off saw a break below the crucial $72.24 support level, thus providing a wider bearish outlook for Brent. With that in mind, the rally we had been seeing yesterday was always likely to falter, with a bearish outlook only being negated if we break above $75.87 swing high.

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