Technical analysis: key levels for gold and crude

Gold looks likely to turn lower before long, despite expectations of short-term upside. Meanwhile, WTI is hoping to extend the sharp rebound seen yesterday.

Oil field
Source: Bloomberg

Gold looking for short-term gains

Gold has been drifting lower over recent weeks, with the price once again hitting a new intraday lower low yesterday.

We are starting to see some initial signs of strength come into play, with a strong chance we will see a move back into the 200-day simple moving average (SMA) on the four-hour chart. A break above $1207 would signify a bullish breakout from this phase, yet until that happens we are looking for a possible retracement into the SMA to continue the recent trend.

WTI extends Fibonacci rebound

WTI rebounded from the 61.8% retracement on Friday, with yesterday’s move above $68.38 providing another sharp rebound for the market.

From here, we are looking out for whether this is a retracement or reversal. A push above $71.18 would certainly signify a wider bullish view. Until then, there is a good chance we could see some element of a slowdown in the ascent.

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