Brent crude oil price and gold price grind higher
Gold and brent gain ground, yet questions remain on how long such a move will last.
Gold regaining ground after decline into Fibonacci support
Gold has been regaining ground after a decline into the 76.4% Fibonacci retracement level. The rise through $1465 provided us with an intraday double bottom formation which points towards further upside to come.
We are seeing indices regain their composure which does add some element of doubt to this rebound. However, unless we see a break below $1459, there is a good chance we will rebound from here to regain the ground lost at the end of last week.
Brent crude continues to climb, yet pullback could come soon
Brent has continued its ascent, following on a break through $63.62 resistance last week. That provided a continuation sign within an uptrend that has been in play since the beginning of October.
However, this trend has also typically seen regular retracements towards trendline support, which is currently lacking. The ascent does seem to be slowing over recent days, signaling a potential breakdown to bring about another retracement phase. As such look for a break below $63.44 and $63.28 to bring about a bearish short-term signal for the pair. Until then, this grind higher looks likely to persist.
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