Technical analysis: key levels for gold and crude

Gold is in a bullish phase following a recent retracement, while Brent crude is showing signs of possibly setting up a retracement buying opportunity.

Gold back in a bullish phase

Gold has been regaining ground since Friday’s lows, with the price having retraced below the 61.8% retracement level.

Crucially, we have seen the price creating higher highs and lows, with that recent pullback providing yet another higher low to push higher from. We appear to be in the bullish phase now, pointing towards further upside to come. With that in mind, a bullish outlook is in play unless price breaks below $1320.

Brent pulls back to Thursday swing low

Brent has pulled back into the $70.85 swing low this morning, bringing about the possibility of a more protracted retracement.

The ability to post an hourly close below that point would provide a signal that we are set to retrace the wider $66.61-$72.79 rally. As such, watch for a response to the $70.85 swing low as a gauge of where we go next, with a break lower pointing towards a move into Fibonacci support. Such a move would be perceived as a buying opportunity, as long as the price does not fall below $66.61. 

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