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Technical analysis: key levels for gold and crude

Gold continues to race higher, while oil prices are breaking lower once again.

Gold bars
Source: Bloomberg

Gold pushes on once more
Risk continues to be out of favour, and so gold is pushing on again. Even though intraday charts are overbought, a breakout above $1175 seems to be on the way.

It might still pay to wait for a more sustained dip, with a big gap before the price gets to the 50-hour simple moving average at $1156. With daily charts so overextended as well, the risk is now of a significant unwinding, with a drop back towards $1135 in prospect.

Gold chart

Brent heads lower
A fresh drift lower today, with the lows of Friday around $33.80 broken, suggests we are headed towards $33 and then $32.26. With stochastics rolling over and relative strength index heading below 50 on the daily chart, it looks like the Brent bounce has run its course. It would take a move back above $36 to suggest the pullback is over.

Brent crude oil chart

WTI still in the clutches of the sellers
Sellers continue to dominate WTI, with targets around $29.56 and $28.48 now in prospect. The price continues to follow the direction laid out by the descending channel, with the potential for a move down towards $25 there if downward momentum accelerates. 

WTI chart

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