Technical analysis: key levels for gold and crude

Gold continues its downtrend after breaking below key support level. Meanwhile, Brent tries to find its direction following a rally into a long-term resistance level.

Oil
Source: Bloomberg

Gold downtrend continues apace

The recent downtrend continued to dominate for gold yesterday, with the price breaking below the crucial $1288 support level.

With that in mind, there is a good chance that we could soon see some form of a bounce. However, unless it were to break above the $1314 mark, a bounce would be seen as an opportunity to sell once more. 

Brent trading around key support level

Brent has sold off into the crucial $57.27 level, where a convincing break below would look likely to pave the way for short-term downside.

Coming off the back of a rejection around the crucial long-term $58.48 resistance level, we are waiting to see if Brent will break through and push into a new phase of upside, or reverse lower. As such, look out for a break back below $57.27 for a more bearish outlook, or else a push up above $58.93 to bring a renewed bullish outlook. 

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