Technical analysis: key levels for gold and crude

Gold begins to show some signs of weakness following attempt to break key resistance, while Brent looks set for another break higher.

Oil barrels
Source: Bloomberg

Potential head and shoulders pattern for gold

Gold has been consolidating on the back of the attempting rally through the crucial $1296 resistance level. That could prove a fake out, with a break below $1280 likely to spark further downside.

That level represents the neckline of a head and shoulders formation. However, for a more bearish view to come into play with greater confidence, we would need to see a move back below the $1267 mark. Until then, the bullish near-term trend remains in play.

Brent looks likely to gain once again

Brent continues to consolidate following the sell-off seen back on Monday. That pullback brought us back into the 76.4% retracement, which points towards a possible move higher from here.

With that in mind, a bullish view is in play unless we break back below the $50.64 swing low. 

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