Technical analysis: key levels for gold and crude

Gold and crude are drifting lower after recent gains. However, with key support in view, there is reason to believe we could see a break higher in the near term.

Gold falls towards trendline support

Gold has turned lower from the $1205 mark, with those losses bringing the price back towards an ascending trendline dating back to the middle of August.

With the recent creation of higher highs and higher lows, we will need to turn higher in the near future to continue this bullish reversal pattern. As such, a bullish outlook remains in play unless the price falls below $1193.

WTI rebounds from SMA support

WTI managed to rebound from the four-hour simple moving average (SMA) support on Friday, with the market heading back toward the $71.00 resistance area.

With the price drifting lower after failing to break through that level, it makes sense to watch for a break above $69.72 (bullish) or below $67.83 (bearish) to provide greater confidence in the next move.

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