Technical analysis: key levels for gold and crude

Gold is heading higher, following on from a fall into Fibonacci and trendline support. Meanwhile, Brent looks set for further downside after a meagre rebound.

Gold continues to regain ground from key support

Gold is gradually moving higher, following on from a retracement into trendline and Fibonacci support.

The question here is whether we are going to see another rally into the $1240 region, or else post another lower low. That should be partially answered by the response (or lack thereof) at Fibonacci levels. Thus far we have done nothing to show that this is a retracement, yet with the 76.4% Fibonacci level up ahead, the response at that $1227 price should tell us a lot about whether we continue to rise or not.

Brent looks set for another leg lower

Brent has shown little appetite to rebound, despite rumours of an impending output deal headed up by Saudi Arabia.

The rally into the 50% retracement has since run out of steam, with the pair breaking lower. Watch for a break below $65.46 to add greater confidence to this bearish outlook. However, whether we sell off immediately, or rebound for a deeper retracement, a bearish outlook is in play unless we rally through $71.93.

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