Technical analysis: key levels for gold and crude

Rebounds for both gold and WTI crude look unlikely to last, with recent declines expected to come back into play.

Gold hits confluence of resistance

Gold has rebounded into the 61.8% Fibonacci resistance level, following a welcome period of respite from the recent decline.

This upside always looked unlikely to last, and with the price having ran into the 61.8% retracement and descending trendline, there is a good chance we will turn lower before long. We would need to see a break above $1217 to negate this wider bearish trend.

WTI rally seems unlikely to last

WTI has been regaining ground over recent trading days, yet with this gradual ascent, there is a strong chance we will see another leg lower before long.

Crucially we have been falling towards the $63.41 level, below which we would be looking at a possible longer-term breakdown. A bearish view remains in play unless we see a break above the $67.82 swing high.

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