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Technical analysis: key levels for gold and crude

Gold prices are down once again, but at least Brent has finally moved above $36.

Oil plant
Source: Bloomberg

Gold could test support at $1200

Gold prices failed to push on yesterday, so we look for some more downside back towards $1220 and then $1200, so long as $1240 remains the key problem for bulls.

A move above here is still lacking so the downside case appears to have the upper hand.

As a result, rallies back towards $1236 and the intraday pivot should be sold, with a view to a test of support around $1200. 

Gold

Brent could slump to 50-day SMA

We duly got a close above $36 yesterday, which is a bullish development. Now the price needs to continue that by pushing on above the recent highs just above $37, which would allow us to contemplate a move to the 100-day simple moving average at $39.32.

A move back below $36 deletes the bullish outlook for Brent, and would risk a slump back towards the 50-day SMA at $33.66.

Brent

WTI could move to $32.37

WTI has yet to get into the bullish mood, with the $34-$35 area proving problematic once again.

The risk is now that we move back to the 50-day SMA at $32.37, and then down to $31. The $38.05 mark is still the upside target if bullish momentum gathers pace. 

WTI

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