Technical analysis: key levels for gold and crude

Gold is trading above a key head and shoulders breakdown level. Meanwhile, Brent crude is heading lower after hitting trendline resistance.

Gold trading at key breakdown support level

Gold is seemingly forming a head and shoulders pattern in the wake of a rally into the 76.4% retracement level ($1228).

The break below $1220 would spark a bearish short-term view, with a projected head and shoulders target of $1208. However, that only comes with a break below $1220. Until then, there is a chance of a rebound from this support level.

WTI turning lower from trendline resistance

WTI has struck trendline resistance once again, following an attempt to regain ground following recent losses.

With that in mind, it looks likely we will see the market turn lower from here, with the continuation of lower highs and lower lows likely to persist. As such, a bearish outlook remains in play unless we see a break through $64.72.

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