Sellers likely to return despite gold and Brent rebounds

Gold and Brent rebound, yet wider bearish trends point towards a strong possibility that the sellers will come back into play before long.

Gold rebound likely to prove fleeting

Gold has been regaining ground following a sharp decline earlier in the month.

The wider creation of lower highs points towards this current rebound likely being a retracement before we turn lower again. Thus, while we could see some more short-term upside, there is a strong chance that the sellers could come back into play before long. Watch for a break below the most recent swing low (currently $1281) as a signal of impending downside. Otherwise, a break through $1303 would be required to negate the bearish trend in play over the past three months.

Gold chart Source: ProRealTime

Gold chart Source: ProRealTime

Brent rebounds, yet bears look likely to return

Brent saw sharp losses last week, with the price falling into a near two-month low.

Since then, we have seen the buyers start to come back into play to bring us back above the notable $68.72 level. However, given the bearish implications of the break below that level, this looks like a precursor to further downside. Look for potential bearish reversal signals within this current rally, with a break above the $72.84 level required to negate the current bearish picture.

Brent chart Source: ProRealTime

Brent chart Source: ProRealTime


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