Technical analysis: key levels for gold and crude

Gold has dropped back into range support, while WTI is falling below a critical Fibonacci support level.

Gold trading back at range support

Gold sold off nicely into the $1206 support level yesterday, with the price respecting the $1216 range resistance once more. Given gold is currently trading at the lower end of this short-term range, there is a chance we could rebound once more.

However, with a wider bearish trend in place, the breakout is expected to eventually come to the downside. As such, look for how gold responds to this support level as a determinant of direction going forward.

WTI breaking below Fibonacci support

WTI is breaking lower from a crucial 76.4% Fibonacci support this morning. This comes off the back of yesterday’s respect of that level.

There is a chance we could be seeing the beginning of a wider breakdown for WTI, given this recent decline, and a break below the deepest Fibonacci support level. A fall below $63.41 would be required to confirm a wider bearish view. However, given this current leg lower, it makes sense to track the short-term trend, with a bearish trend remaining in play unless we see a break above $67.04.

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