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Technical analysis: key levels for gold and crude

Both Gold and WTI have started to turn lower, following periods of strength, with key support levels to be broken before the bearish view comes into play. 

Gold bars
Source: Bloomberg

Gold turning lower

The gold price appears to be turning bearish today, with the ability to post an hourly close below $1251, which would be key to providing a bearish signal.

Below that, we have the $1248 level to contend with, yet with such a strong rally coming into the current pullback, it looks like we could see further downside before we move higher once more.

Gold chart

Could H&S pattern point to WTI losses?

The WTI price has turned lower again from the $54.64 region, moving back into trendline support. However, with the price breaking below last night’s low of $54.11, we have seen a head and shoulders pattern form.

The inability to close below $54.11 could be a saving grace, but if we see the price break back below that level, and more importantly break through $53.84, then we could see the sellers come back to push back towards the $53.22 and even $52.00 levels

WTI chart

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