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Technical analysis: key levels for gold and crude

Both gold and WTI have been falling back, as we see increasingly bearish signs coming into play, despite recent strength.

IG Analyst

Publication date : 2018-07-30T09:29:53+0100

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Gold testing crucial support level

Gold has dropped into the $1218 support level, with the price starting to turn higher.

The recent attempt to regain ground following a break below the crucial $1236 support level seems to have failed, with a drop below $1218 needed to confirm a likely breakdown from here. Until then, a rebound back into $1235 could be on the cards.

Gold chart

Gold chart

Gold chart

WTI wedge breakdown signals potential bearish shift

WTI has broken lower from a rising wedge formation, with the price falling towards the crucial $67.95 support level. A break below there would point towards a greater chance of a wider breakdown from here.

For now, we are seeing the price turn higher, with a strong chance that we are simply retracing the sell-off from $69.61. A break above that level would point towards a continuation of the recent uptrend. However, until that happens, there is a good chance this rebound will fall short.

WTI chart

WTI chart

WTI chart

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