Technical analysis: key levels for gold and crude

Gold has been regaining ground after a sell-off from Fibonacci resistance, while the recent pullback in Brent points towards further downside to come.

Gold heads back towards Fibonacci resistance

Gold is regaining ground once more, following a sharp decline at the hands of the 61.8% Fibonacci resistance level. On the shorter timeframe, we clearly have an uptrend in place.

Thus, further upside does look likely unless we break below the $1303 swing low. However, should such gains come into play, the reaction to the 61.8% and 76.4% Fibonacci levels will be key in determining whether we are set for a bearish turn or not.

Brent falls back into key support level

Brent declined into the $66.09 support level on Friday, bringing about a heightened chance that we are set for a more bearish short-term phase.

The initial inability to break that level points towards a likely rebound on the short term, with a rally through $66.85 adding credibility to that view. Otherwise, a break below the $66.09 level would point towards further downside as we move into a likely retracement of the wider $64.00-$68.53 rally.

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