Technical analysis: key levels for gold and crude

Brent begins to turn lower once more

Brent managed to create the first intraday low in three weeks yesterday, following continued pressure on the top end of its $54.00-$57.46 range. Given that we saw a lower high precede this move, there is reason to believe we could see the price of Brent turn lower from the 76.4% retracement. So far, any rally into that area could be an interesting area for shorts.

However, a break back above $57.04 would point towards a move back into the $57.46 resistance. Given the continuous moves into that resistance level, the alternative is to look for shorts for a move back to $55.63, yet utilizing the $57.46 region for stops, thus reducing the risk/reward and improving the chances of being right.