Sellers likely to return despite gold and Brent rebounds
Gold and Brent rebound, yet wider bearish trends point towards a strong possibility that the sellers will come back into play before long.
Gold rebound likely to prove fleeting
Gold has been regaining ground following a sharp decline earlier in the month.
The wider creation of lower highs points towards this current rebound likely being a retracement before we turn lower again. Thus, while we could see some more short-term upside, there is a strong chance that the sellers could come back into play before long. Watch for a break below the most recent swing low (currently $1281) as a signal of impending downside. Otherwise, a break through $1303 would be required to negate the bearish trend in play over the past three months.
Brent rebounds, yet bears look likely to return
Brent saw sharp losses last week, with the price falling into a near two-month low.
Since then, we have seen the buyers start to come back into play to bring us back above the notable $68.72 level. However, given the bearish implications of the break below that level, this looks like a precursor to further downside. Look for potential bearish reversal signals within this current rally, with a break above the $72.84 level required to negate the current bearish picture.
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