Technical analysis: key levels for gold and crude

Gold continues to pull back, with a neckline support dictating the state of play today. Meanwhile, WTI looks likely to turn lower, following a rally into a range top.

Oil pump
Source: Bloomberg

Gold at key H&S neckline

Gold has weakened back into the $1232 support level this morning, which should dictate the state of play for the day. An hourly close below that level will give us a good chance of the market selling off heavily once more.

Should that occur, it would provide a retracement to buy into, as the current move is expected to be a short-term pullback, within a resumption of the uptrend evident in early 2017. As such, an hourly close below $1232 would point towards short-term downside, yet the bullish view starts coming back into play around the $1227-$1223 region. A break back below $1216 would negate this wider bullish view. 

WTI reaching major resistance level once more

WTI is moving higher once more this morning, with the market remaining within the range that has been in play throughout 2017. The tops of that range are often varied, however, with the majority of those peaks falling around the $54.64 region.

That level coincides with the top of the Bollinger band, thus building a strong region of resistance to look for shorts. We would need a break and close above $55.67 to negate this impending bearish reversal.

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