Technical analysis: key levels for gold and crude

Gold and Brent are expected to continue declines despite recent periods of upside.

Gold fails to break below key support

Gold sold off from near the crucial $1236 level yesterday, with the wider bearish trend expected to come back into play given the respect of that crucial resistance level.

However, we have failed to see that bearish turn drive a move below the $1211 low set on Thursday. That move would be needed to continue the downtrend, while a rally up through $1236 would signify the potential for a rebound over the short term.

Brent rally unlikely to last

Brent has been moving gradually higher over the past week, in what looks like a retracement of the $75.87-$71.27 sell-off.

This points towards a likely breakdown in the price soon enough, with a rally above $75.87 required to negate the bearish outlook. For confirmation that the sell-off is about to occur, look for an hourly close below $72.35.

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