Technical analysis: key levels for gold and crude

While both gold and WTI have been gradually gaining ground throughout the course of the week, we are beginning to see signs of a bearish breakdown for both.

Gold approaching key breakdown level

Gold has been drifting lower throughout the past 24 hours, with the recent rally into the $1235 level providing an ascending triangle formation (higher lows, flat top).

Ultimately, we need to see a break below $1218 to signal a continuation of the wider downtrend for gold. Until then, there is a chance we could continue to create higher lows, with the 76.4% retracement level perfectly marking the low of the day thus far.

WTI wedge pattern could spell trouble

WTI has been tightening as it gains ground over the past week. This looks likely to be setting us up for a period of downside, with the 76.4% retracement also providing a potential level for the price of WTI to turn lower from.

A break through the $70.78 mark would signal a return to the wider bullish trend. However, until that happens, there is a good chance we could see crude turn lower in the coming days. 

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