Technical analysis: key levels for gold and crude

Gold looks set to turn lower, while Brent is reaching a critical junction after recent losses.

Oil pipes
Source: Bloomberg

Gold turning lower after 76.4% retracement

Gold failed to break through the $1238 mark earlier in the week, and with the price respecting the 76.4% resistance mark, there is a growing chance of another leg lower from here.

The creation of a new lower low last week points towards a potential lower high coming into play. With the respect of Fibonacci resistance bringing about greater confidence that makes such a move occur, there is a good chance that we will fall below the $1212 support zone to bring us into the deeper retracement levels around $1205 and $1195.

Brent attempts fightback after deep pullback

Brent has declined towards the critical $70.49 support level, with a break below that level providing a wider bearish outlook.

Given the importance of that level, there is a good chance we will see some form of rebound from here, with a break through trendline and horizontal ($74.11) resistance providing us with a more bullish outlook. As such, keep an eye out for a break through either $74.11 or $70.49 to provide the outlook from here.

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