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Technical analysis: key levels for gold and crude

Gold pulls back marginally, despite weakness in stocks. Meanwhile, crude prices show signs of potentially coming to a halt. 

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Oil steam injection
Source: Bloomberg

Gold

Although it has edged lower this morning the upward move is intact. If dip buyers enter and succeed in holding the price above $1320 then a challenge of $1350 may develop, in which case we would look towards $1392 and then $1435.

Overall, the upward move remains in action as long as the price holds above $1300. It is a close below here that should worry gold bulls.

Brent

Friday's low around $49.30 should be watched carefully, as a close below here could suggest the bounce of last week has run its course. While there is once again possible support at the 50-day simple moving average ($48.85), a downward move would likely head towards $46.50 and the lows of 23 June.

A recovery back above $51 still targets $52.85 and then $54.15 for Brent.

WTI

So far price action in WTI is doing little to change the idea that we may be seeing a new leg lower, as the sequence of lower highs kicks in. A move below $46, the 23 June lows, would suggest that we would see further downward moves, perhaps down as far as $42.60, the lows of early May.

A close above $50 is still needed to reverse the cautious outlook here.

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