Technical analysis: key levels for gold and crude
Gold looks set for further upside amid recent gains. Meanwhile, Brent is finally starting to show more bullish signals in the middle of wider declines.
Gold uptrend continues unless told otherwise
Gold has been trending upwards in a remarkably consistent manner. This looks likely to continue further, with a short-term downside providing little in the way of anxiety for bulls.
The key bearish signal to watch for is a drop below the most recent swing low, which is currently $1279. Until then, further upside seems likely from here.
Brent could return to test trendline resistance once more
Brent managed to rally into trendline resistance yesterday, with the price drifting lower since. However, with crude prices seemingly forming a bit of a base, there is a good chance we will see another push upwards to attempt to break through that same trendline.
This would be the first bullish signal following a protracted sell-off that took Brent from $86.00 to $50.00. With the price so oversold, there is a good chance we will see the bulls start to gain some traction, and thus, as long as we remain above the $52.02 swing low, further upside seems a distinct possibility.
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