Technical analysis: key levels for gold and crude

Gold sell-off looks to provide a buying opportunity, while crude weakness continues to persist after recent selling.

Oil pump
Source: Bloomberg

Gold weakness could be short-lived

Gold has been selling off overnight, with the price having passed the 61.8% retracement this morning. Given the recent uptrend, there is a good chance we could see the price begin to rally once more from here.

On the wider perspective, the inability to break through $1296 provided mixed signals as to whether this trend will continue. However, it still looks attractive to be long at a deep retracement as long as we do not break below $1259.

Brent continues to pull back

Brent has suffered overnight, with the recent downtrend picking up momentum once more. To the downside, the next level to watch out for is $46.70.

For now, we have a clear downtrend in play so it makes sense to sell on rallies as long as we don’t see a break through $50.36 resistance.

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