Technical analysis: key levels for gold and crude

Gold looking bearish as it remains below $1200 mark, while crude markets await the OPEC decision.

Oil barrels
Source: Bloomberg

Gold turning lower from key $1200 region

Gold has been regaining ground over recent days, with price rallying back towards the $1200 mark. However, as long as price remains below $1200, a bearish outlook is in play.

Given the creation of a new lower high overnight, an hourly close below $1183 would provide a notable bearish signal for gold.

Brent pullback finding support

Brent Crude has found support on the $48.43 level this morning, following on from a period of weakness overnight. From a wider perspective, yesterday’s bounce from the 76.4% retracement could mark the end of the recent weakness, with a break back below $47.30 required to provide a more bearish medium-term view.

Until then, there is still hope that we could see a break higher once more. However, it makes sense to wait a break through $49.72 to confirm this view.  

WTI turning lower from trendline resistance

WTI has been weakening following a rally into an inside trendline yesterday. With those losses largely confined to small, indecisive candles, there is a possibility that this current period of weakness is a precursor to another rally in line with the wider trend.

However, with the OPEC meeting approaching there is likely to be significant news-driven volatility, thus making current positions risky. 

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