Technical analysis: key levels for gold and crude

Crude and gold could be set for a reversal of recent trends, with gold finally finding buyers, and WTI starting to form a potential intraday top.

Oil pump
Source: Bloomberg

Gold rebounds from critical support level

Gold has finally found some buyers, with the rapid decline seen over recent weeks bringing the price back into the critical $1236 support level. A break below there would have pointed towards a long-term bearish picture coming into play.

However, with the price having rebounded from that support level, pushing through the first intraday swing high of $1255, there is a good chance we could see a more protracted move higher. With gold turning lower, the big question is whether any downside move would be a retracement followed by a rally through $1260 (bullish), or else a fall below $1236 (bearish).

WTI consolidation could point to near-term pullback

WTI has been consolidating this week, with the price rotating around the $72.88 peak set in late May.

With the intraday picture showing lower highs and lower lows, there is a chance we are forming some sort of top, with a potential retracement phase coming into play. Look for a break below $71.74 as a bearish signal over the short term, where a break above $74.08 would be required to resume the bullish trend.

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