Technical analysis: key levels for gold and crude

Gold begins to ask questions following a rally into trendline resistance. Meanwhile, crude prices begin to turn lower, following the creation of a short term head and shoulders formation.

Oil pump
Source: Bloomberg

Gold finding support following pullback

Gold has found its initial gap higher sold into, with the price moving back into the crucial $1282 support level overnight. Given that this comes off the back of a rally into a key trendline resistance, it’s not surprising that questions are being asked.

However, for the next move to become clear, we need either a break higher from here, or a move back below $1282. 

WTI begins to break lower

WTI broke through the trendline support last week, and it appears that we will see that initial move extended, given the current push below $53.01. That completes a head and shoulders formation, pointing towards further downside. In the short term at least.

We would need a break through $53.72 to negate this bearish outlook.

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