Countertrend moves for gold and Brent bring trading opportunities
Gold is drifting lower, yet the wider bullish trend is expected to return. Conversely, Brent gains have taken us into resistance, with bears likely to come back into prominence.
Gold pullback looks like buying opportunity
Gold has moved lower overnight, with the price seemingly retracing yesterday's rally. That rally took the market through the notable $1551 resistance level, bringing a new six-year high. As such, the uptrend continues and the weakness we are currently seeing looks like a short term retracement.
With that in mind, bullish positions are favoured from here, with a break below $1534 required to bring about a more bearish picture.
Brent crude surges through resistance level
Brent has managed to surge higher over the course of yesterday, with the price hitting the highest level in two-weeks after breaking through $60.61 resistance. That break points towards a potential wider bullish resurgence, negating the prior creation of lower highs.
However, it could also merely be another rally within a period of consolidation that will ultimately resolve lower in accordance with the wider bearish trend. Given the wide swings we have seen in this market of late, there is a good chance we could see another strong move downward, even if it is a retracement. As such, watch out for a potential bearish signal when the stochastic falls back below the 80 mark. Conversely, we would need to see a break through $61.32 and trendline resistance to bring a wider bullish picture into play.
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