Technical analysis: key levels for gold and crude

Crude prices tumble, as overnight gains prove fleeting. Meanwhile, gold is forming a potential topping pattern, where a support level, if broken, could pave the way for significant losses.

Gold bullion
Source: Bloomberg

Gold posting potential topping pattern

Gold continues to show signs of potential weakness, with another big move lower looking like a distinct possibility. We would need an hourly close below $1333 for that to come through and until that happens, watch out for the ascending trendline for near-term support.

Brent turning lower once more

Brent rallied into the 76.4% retracement, following a sell-off from trendline resistance. Having broken below the $47.39 swing low this hour, we look set for another sharp move lower.

Given the inability to regain the $48.66 level, it appears likely we will see oil lose ground as we head into the oil producers meeting. As such, a bearish outlook is in play, with an hourly close above $47.83 negating this view.

WTI looks likely to sell off further

WTI has also taken a turn for the worse, with a failure to take the $46.60 level yesterday being followed up by a failure to break above yesterday’s high of $46.32.

With that in mind, we look likely to sell off further, with $44.56 the next key intraday support level. This bearish view remains unless we see an hourly close above $46.10. 

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