Technical analysis: key levels for gold, silver & crude

Oil prices have stabilised after some weakness yesterday, while gold is aiming to recover some of the ground lost in yesterday’s swift move back down from near $1280.

Gold
Source: Bloomberg

Gold pulls back
We have seen a push to $1280 this week for gold, but yesterday saw a pullback. The risk is now that we see an unwind in the direction of the rising hourly trendline, back down towards $1220.

Any break above $1280 would put the commodity on course for $1300, the high from January of last year.

Gold chart

Brent looks to move down
A strong move higher over the past few days makes Brent ripe for some downward moves, or so it seems. A swift move back below $41 yesterday has seen a small move up overnight, but if it is unable to get back above $40, then a bigger move down to the 50-hour simple moving average at $37.68 could be in the offing. An even larger pullback would move back towards the rising daily trendline and support around $36.50. 

Brent chart

WTI remains above its trendline
Despite failing to push on above $38, the key resistance level from late December, WTI remains above its rising daily trendline. We will be watching this closely for signs of a break either above $38, or below $35.50. The former would then push the price on towards $42, the high from early December, while the latter raises the prospect of a move back to $34, key resistance at the end of January and during most of February. 

 

WTI chart

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