Gold and Brent crude prices both in retracement mode
Gold and Brent crude reverse in early hours, yet these retracements could bring trading opportunities.
Gold rallies within recent sell-off
Gold has started to regain ground following Friday’s losses, with the surge in stocks paired with weakness for gold. Unsurprisingly we are seeing the price regain ground as the equity rally eases back.
However, in the same way that stocks look like they are in retracement mode, it is likely that this rally is going to be a precursor to further downside. With that in mind, a bearish short-term picture remains in play unless we see a break through the $1503 swing high.
Brent pulls back into prior breakout level
Brent seems to have broken out, with the recent rally through $59.51 coming off the back of a wider decline into the $55.80 low. The retracement back into the $59.51 breakout level signals a notable area of support to watch today.
A decline below that level would point towards a wider retracement, with this short-term decline seen as a retracement of the rally from $57.24. This bullish view holds unless we see a drop below that $57.24 swing low.
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