Technical analysis: key levels for gold and crude

Risk appetite is taking a hit, as the uncertainty of Sunday’s Doha meeting is providing a drag on crude. Meanwhile, gold is finding some buyers amid a flock to safety.

Gold bars
Source: Bloomberg

Another retracement for gold
Gold is rising in what looks like another retracement, similar to that seen yesterday. There is clearly a risk-off sentiment rushing through financial markets thus there is a chance this retracement could extend higher.

However, we would need to see an hourly close back above $1244 to think this is anything other than a retracement. Key resistance levels to watch in the meantime are $1234, $1236 and $1239. 

Big move lower for WTI
WTI is tumbling back towards a crucial support level this morning, with a break below $41.82 representing the completion of a double-top formation. Should we see an hourly close below that level, it would provide a $40.25 projected target.

In the event we do see a break below $41.82, other support levels to watch are $41.44 and $41.11. Otherwise, we would need to see a break back through $43.43 to highlight another leg higher for WTI.

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