Technical analysis: key levels for gold and crude

Gold looks set to continue its descent following a recent rebound. Meanwhile, WTI is seeking to extend gains following a bullish breakout after a period of downside.

Gold
Source: Bloomberg

Gold turning lower from trendline resistance

Gold has started to reverse lower following a rally into trendline resistance, with the market looking likely to fall back into the wider downtrend that has been in play for over four months now.

In fact, should we see the price close out the week above $1183, then this would be only the second positive week for gold in over two months. Thus further downside looks likely from here, with a break above the $1202 level required to bring about a more bullish outlook for the short term.

WTI heads higher after bullish breakout

WTI has managed to gain further ground following a shallow retracement yesterday. This follows a break through trendline horizontal resistance.

That break through the $67.82 swing high negates the creation of lower highs that has been in place for almost two months. Given the failure to break below the wider $63.41 swing lower, this means that the long-term uptrend remains intact, and points towards a possible rally from here. The dollar strength story is one potential reason for this to falter. However, unless we break below $63.41, it looks likely that we will continue to push upwards from here.

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