Technical analysis: key levels for gold and crude

Gold continues to break lower, while Brent hesitates within recent climb. 

Gold falls into six-month low

Gold has broken lower once more, with the short-term downtrend remaining intact. The fact that we have seen the price fall below the 76.4% Fibonacci support level means that there is a good chance we are seeing the beginning of a wider breakdown in the price for gold.

A move below $1236 would ultimately provide the signal to say that we have seen a bearish break from the long-term uptrend seen since the start of 2017. Aside from that, a bearish short-term outlook remains in place for the moment, with a break through $1272 required to bring a more bullish view into play.

WTI consolidates after outperforming Brent

Friday saw sharp gains for WTI, with the Organisation of the Petroleum Exporting Countries (OPEC) output rise sparking greater indecision from Brent.

Disruption to Canadian oil sands should help provide support for WTI too, and thus it makes sense to look for longs in this market over Brent. We are currently seeing consolidation coming into play at trendline support. Another leg higher seems likely before long, yet it makes sense to either await a deeper retracement or else a break through $69.01. A break below $64.31 would be required to negate this bullish outlook.

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