[Gold] broke its H&S neckline around $617 with today's sharp fall. Measured targets are just below $575, which would take the market near range floors set back in October of last year. While admittedly aggressive, the two-month zone of trading between $570-610 in Oct-Nov is unlikely to be sliced through too quickly, though what has happened in oil and should certainly remind traders how fast markets can drop. Gold will set a new Trend Intensity signal on these losses, its first since Nov 1. Intraday resistance is at $611, then $612.50-14.
[Oil] is zeroing in on benchmark levels reached in November on nearest futures charts at $54.86, having come within 4 cents of reaching that level today. Either side of $55 stands out firmly as a key reference level on weekly charts (again earest futures). There is a multi-year H&S top that we have avoided discussing up to now, but a firm break below $55 would usher in objectives that defy logic well below $40. Intraday supports are near $55.50 at present. Trend Intensity is holding an unusually firm bearish signal.
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