Technical analysis: key levels for gold and crude

Gold and Brent rebound following recent losses. However, with longer-term bearish outlooks in play, there is a chance we could see some weakness soon enough.

Gold bar
Source: Bloomberg

Gold turns towards trendline resistance

Gold managed to bounce back sharply yesterday, with the bearish connotations of a break below $1254 being averted, for now.

With the wider market perspective looking like we could top off soon, it is worth keeping an eye out for a potential bearish reversal signal. That would come with a break below the $1257 mark. Until then, a break above $1273 would point towards another leg higher.

Is Brent forming a double top?

Brent is weakening this morning, following a rally which failed to regain the $52.93 mark.

If we now see a break below $50.89 mark, then there is a good chance we will enter a significant period of downside for Brent given the completion of a double top. This would conform to the long-term bearish outlook. Until then, the short-term uptrend remains intact.

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