Technical analysis: key levels for gold and crude

Gold and Brent have enjoyed significant gains of late. But, although there could be short-term pullbacks in play, further upside seems likely.

Gold gradually retracing lower

Gold is slowly channeling lower, following a blockbuster rise over the past three weeks.

This current move lower is unlikely to last; for a bullish view to come back into play, we would be looking for a break above the recent swing high of $1318. Until then, there is a good chance we could see another short-term move lower from here.

Brent rallies despite wedge breakdown

Brent managed to rally sharply yesterday, despite the initial signs of short-term weakness, after the price fell from a wedge pattern.

With the price starting to turn lower, there is a chance we could start to see a retracement of the $66.17-$68.15 move. As such, short-term downside would be seen as a buying opportunity, where the price would have to break below $66.17 to negate the bullish view.

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