WTI price and gold price rise towards trendline resistance
Gold and WTI at key crossroads, with recent gains bringing trendline resistance into play.
Gold consolidates around resistance zone
Gold has been in consolidating around the 76.4% Fibonacci resistance level, with the pickup in volatility seen this morning highlighting that we are at a crucial point for this market. The wider trend does point towards a likely bullish breakout before long, with a rise through trendline and $1713 bringing a bullish signal from here.
Until that happens, there is a chance we could roll over for the short term in a move that continuous the gradual decline of the past week. Nevertheless, any such weakness would simply provide a buying opportunity, with a wider bullish view in play until we break below $1660.
WTI surges into trendline resistance
WTI has seen another leg higher overnight, with the market hitting a two-week high. However, this rally has taken us into a descending trendline which is only confirmed with a third touch today.
Thus, it is worthwhile watching to see if we see any notable response from this level. With the wider downtrend still remaining in play until we see $31.57, there is a good chance we turn lower before long. Huge questions remain with respect to overproduction and storage, with fear of another squeeze when the June contract comes to an end next week. Therefore, while we are yet to see a bearish reversal signal, the current rally is likely to be on borrowed time.
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