Technical analysis: key levels for gold and crude

Gold has approached a crucial support level, where a break lower would signify the beginning of another period of weakness. Meanwhile, WTI is attempting to regain ground following the respect of the 61.8% retracement level.

Gold consolidates above key breakdown level

Gold has been consolidating at the start of the week, following a fall towards $1190 from the four-hour simple moving average (SMA) resistance.

The ability to break below that $1190 level is key to understanding whether we are going to see a wider bearish picture come back into play. Given the lower high posted last week, a break below $1190 would point towards another sharp move lower from here.

WTI rebounds from Fibonacci support

WTI managed to rebound from the 61.8% retracement on Friday, with the market continuing to push higher this morning.

The key here is whether we can see a break through the $68.39 mark in order to signify the end of this pullback. As such, we could see further gains, yet it makes sense to wait for a break through that resistance level as a key to further gains.

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