Technical analysis: key levels for gold and crude

Both gold and WTI are showing signs of a potential impending breakdown in the price. However, with the two requiring a break below key support, we await a bearish signal for both markets. 

Gold back at key support level

Gold is heading back into the $1219 support level once again this morning, with another breakdown looking highly likely from here on in.

Recent consolidation has given us little upside, and with flatlining tops giving way to flat lows, we are awaiting a break below $1218 or above $1236 to establish a breakout direction. With that in mind, watch for an hourly close below $1218 this morning as a signal of further downside. Should that not occur, we could be looking at a short-term range coming into play.

WTI continues to regain ground

WTI has continued its ascent, with the price rallying into Fibonacci and trendline resistance yesterday.

There is a strong chance this is a retracement before we break lower, yet it makes sense to await a break below the $68.02 swing low to signal a breakdown from here. Until then, the short-term uptrend remains in play. 

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