Technical analysis: key levels for gold and crude

Gold and Brent are gradually regaining ground after recent losses. However, will these moves last or prove fleeting?

Will gold rebound have legs?

Gold has been regaining ground since rebounding from the $1306 support zone last week. However, until we see a break above $1341, there is a worry that we are simply seeing another retracement before we turn lower once more.

Yesterday’s losses brought the price into an interesting support zone of $1315-$1317, which raises the likeliness of another turn lower following the 61.8% retracement. However, such a move is not clear yet. Watch out for a break back below $1317 to provide a more bearish outlook, while a break above $1341 would be required to negate the chance of another turn lower.

Brent turning lower after sharp rally

Brent looks to be back in the driving seat, following on from a near-76.4% retracement last week.

With Brent creating higher highs and higher lows in the short term, there is a good chance that we are seeing a short-term retracement this morning. This should provide a bullish buying opportunity. This short-term view remains unless the price breaks below the $64.04 swing low.

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