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Technical analysis: key levels for gold and crude

Gold upside proves fleeting, with the price falling back into a key support level. Meanwhile, Brent is showing signs of weakness after rallying into a crucial long-term resistance level.

Source: Bloomberg

Gold selling off despite deep retracement

Gold has been moving sharply lower once again, coming off the back of a deep retracement earlier in the week. Crucially we did not see the market break above $1316, and as such the downtrend of the past fortnight remains intact.

A break below $1288 would confirm the continuation of this downtrend, with a break through $1316 required to negate this bearish outlook.

Brent weakening from long-term resistance

Brent is showing some tentative signs of weakness this morning, following an attempted break through the long-term resistance level of $58.48. The potential creation of a lower high means that an hourly close below $57.27 would signal a potential bearish shift for the market.

With that in mind, we are at a crucial junction for Brent, where we either break lower and reverse away from resistance, or break through it. This all seems to culminate into a ‘wait and see’ scenario for the time being. 

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