Technical analysis: key levels for gold and crude

Gold continues to decline, while WTI is attempting to regain ground after recent losses.

Gold continues to decline

Gold is pausing following yet another leg lower yesterday. The break below $1236 last month pointed towards further downside, and that is playing out nicely. The break below $1205 (July 2017 low) and the $1200 handle points towards a clear disregard for support, with further downside likely.

While we are seeing the price start to turn higher, shorts look preferable. With that in mind, it makes sense to look for a decent retracement before going short, or else a short at the $1191 level should this rebound prove short-lived.

WTI rebounds after drop into trendline support

WTI is starting to regain ground after a sharp but temporary sell-off yesterday. The wider bullish picture remains relevant, with an ascending trendline and the 76.4% retracement pointing towards a potential recovery from this area.

Look for an hourly close above $67.37 as a signal of potential upside to come. Meanwhile, a break below $65.21 would be required to negate this bullish view.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.