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. 

Gold price chart

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.

WTI price chart

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