Technical analysis: key levels for gold and crude

Gold falls into crucial trendline confluence, while signs of resurgence for Brent remain in need of confirmation.

Gold bars
Source: Bloomberg

Gold moves into trendline confluence

Gold has sold off into a key confluence support this week, with long-term ascending and descending trendlines converging at the $1269 mark. This could be a crucial turning point for gold, which has been selling off consistently over the past month.

Ultimately, we would need to see a break up through $1290 to negate this current downtrend. However, watch out for a potential bounce from here, even if it could just be a retracement of the recent leg lower.

Brent showing tentative signs of resurgence

Brent is breaking through the near-term resistance of $56.14 this morning, in a move which could signal some form of resurgence for the market. The more important swing high to break through is $56.68, where a push above that level would look likely to signal a recovery from the recent downturn.

An hourly close above $56.14 would signal a high likeliness of a move into $56.42. However, until $56.68 Is broken, the recent sell-off remains intact.

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