Technical analysis: key levels for gold and crude

Gold falls into a crucial long term support level, while Brent manages to break above a key resistance level as it looks to continue its medium-term uptrend. 

Oil pump
Source: Bloomberg

Gold retraces from Fibonacci and trendline confluence

Gold has been gradually gaining ground overnight, following on from another drop yesterday. On a wider perspective, a long-term trendline and Fibonacci (76.4%) provide a possible area for gold to bounce from, at $1241.

As such, while the short-term picture is certainly bearish, a break below $1241 would provide greater confidence of impending downside. On the flipside, a break above $1251 would provide a signal that we could be in for some form of bounce for gold.

Gold chart

Brent breaks above key resistance level

Brent managed to rally up through the crucial $64.57 resistance level yesterday, bringing a bullish outlook into play.

The indecision candles seen this morning point towards some form of pullback. However, given that break through $64.57, any such short-term weakness would be viewed as a temporary in nature.

Brent chart

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