Technical analysis: key levels for gold and crude
Gold is rising from a key support level, while Brent looks set for further downside after a recent topping pattern.
Gold rebounds from key support level
Gold failed to break through the $1277 support level, with the rally above $1281 paving the way for a rebound over the near term.
That is what is playing out currently, and now the question is whether we are going to see the market move into a range (to head towards $1295) or a retracement before we head back into the $1277 level. Irrespective, given the inability to break below $1277 alongside the rally above $1281, we seem likely to see further upside for the near term.
Brent turning lower after recent topping pattern
Brent has formed a clear topping pattern over the short term, with a break below trendline support pointing towards further downside for the day.
There is a good chance that this is the beginning of a period of weakness, although with the wider uptrend still in play, such downside is likely to be a short term phenomenon. Thus, watch for further downside over the short-term, yet unless we break through the likes of $60.04 and $59.02, there is a good chance that we will soon see the bulls come back into play.
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