Technical analysis: key levels for gold and crude

Gold is trading within a range, yet we are seeing the volatility come in crude, with WTI breaking lower from a 76.4% to hit our target and trigger a wider 76.4% retracement.

Gold rangebound after recent declines

Gold has been largely trading within a $10 range over the past week, with the price respecting the $1206 and $1216 levels.

We are moving away from the upper echelons of that range, pointing towards a likely move lower in the coming hours. However, look for an hourly close above or below these levels to highlight where the next move comes.

WTI completes 76.4% breakdown

WTI broken below the $66.42 support level, following on from a sharp drop late into yesterday’s session. This takes us into the wider 76.4% retracement ($65.93), which brings the longer-term uptrend into play.

With that in mind, there is a strong chance that we will see WTI start to strengthen from here. A break below the 76.4% would serve to heighten the chances that the wider bullish trend is going to be broken. However, for now it makes sense to look for short-term upside. 

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