Technical analysis: key levels for gold and crude

Gold and crude are drifting lower after recent gains. However, with key support in view, there is reason to believe we could see a break higher in the near term.

Gold falls towards trendline support

Gold has turned lower from the $1205 mark, with those losses bringing the price back towards an ascending trendline dating back to the middle of August.

With the recent creation of higher highs and higher lows, we will need to turn higher in the near future to continue this bullish reversal pattern. As such, a bullish outlook remains in play unless the price falls below $1193.

WTI rebounds from SMA support

WTI managed to rebound from the four-hour simple moving average (SMA) support on Friday, with the market heading back toward the $71.00 resistance area.

With the price drifting lower after failing to break through that level, it makes sense to watch for a break above $69.72 (bullish) or below $67.83 (bearish) to provide greater confidence in the next move.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.

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