Technical analysis: key levels for gold and crude

Gold starts to show signs of weakness, yet the recovery remains intact for now. Meanwhile, crude prices show some signs of a resurgence as we await the next move. 

Gold bars
Source: Bloomberg

Gold threatening to break lower

Gold is breaking below trendline support this morning, despite the sell-off occurring in the major indices. The most significant sell signal comes not with the trendline break, but instead an hourly close below $1265.

Should that occur, it would point towards a move back into $1260 and possibly $1246. Until that happens, the uptrend remains intact.

Brent seeks to hold above key support level

Brent has managed to break back above the $51.23 level, which represented the double-top neckline broken on Tuesday. The ability to maintain price action above this level is key to looking like we could see a bounce from here.

Nevertheless, the breakdown did not really take shape and unless we start seeing selling pressure back below $51.23 and $50.60, a bullish signal seems likely with a break above $51.86.

WTI attempting to move back below support

WTI failed to break above $50.22 yesterday, with price moving back into and temporarily below $49.70.

Much like Brent, the picture is somewhat convoluted and as such it makes sense to await a breakout from the $49.01-$50.22 zone for the market bias.

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