Technical analysis: key levels for gold and crude

Losses continue for WTI, while gold is struggling to recover gains made earlier in the week.

Worker checking oil barrels
Source: Bloomberg

Gold recovers, but still looks fragile
Although the price has recovered somewhat overnight, it still needs to get back above $1244 to confirm more gains are on the way. Even then, it will find itself trapped below the rising trendline around $1265.

A move below $1224 would suggest we will retest the lows of Monday at $1210, with a bigger move down taking the price to the rising trendline and the $1190 area.

WTI retreat set to continue
The break below $38 and key support suggests the retreat in the price will go on. The next area to watch is the second weekly support pivot at $36.39, with $34.44 below that.

If the price cannot get back above $38 then it looks like rallies will continue to be sold. 

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