Technical analysis: key levels for gold and crude

Gold continues to decline, while WTI is attempting to regain ground after recent losses.

Gold continues to decline

Gold is pausing following yet another leg lower yesterday. The break below $1236 last month pointed towards further downside, and that is playing out nicely. The break below $1205 (July 2017 low) and the $1200 handle points towards a clear disregard for support, with further downside likely.

While we are seeing the price start to turn higher, shorts look preferable. With that in mind, it makes sense to look for a decent retracement before going short, or else a short at the $1191 level should this rebound prove short-lived.

WTI rebounds after drop into trendline support

WTI is starting to regain ground after a sharp but temporary sell-off yesterday. The wider bullish picture remains relevant, with an ascending trendline and the 76.4% retracement pointing towards a potential recovery from this area.

Look for an hourly close above $67.37 as a signal of potential upside to come. Meanwhile, a break below $65.21 would be required to negate this bullish view.

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