Technical analysis: key levels for gold and crude

Both Gold and WTI have started to turn lower, following periods of strength, with key support levels to be broken before the bearish view comes into play. 

Gold bars
Source: Bloomberg

Gold turning lower

The gold price appears to be turning bearish today, with the ability to post an hourly close below $1251, which would be key to providing a bearish signal.

Below that, we have the $1248 level to contend with, yet with such a strong rally coming into the current pullback, it looks like we could see further downside before we move higher once more.

Gold chart

Could H&S pattern point to WTI losses?

The WTI price has turned lower again from the $54.64 region, moving back into trendline support. However, with the price breaking below last night’s low of $54.11, we have seen a head and shoulders pattern form.

The inability to close below $54.11 could be a saving grace, but if we see the price break back below that level, and more importantly break through $53.84, then we could see the sellers come back to push back towards the $53.22 and even $52.00 levels

WTI chart

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.