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Technical analysis: key levels for gold and crude

WTI’s recovery last night puts the commodity firmly on the front foot, while gold is revisiting a trendline not seen for several weeks.

Gold
Source: Bloomberg

Gold price drops
The price for gold has retreated almost to the rising daily trendline, last touched right at the beginning of February. $1225 may provide support along this line, with a break below it heading towards the $1200 level. A bounce higher heads towards $1240 and then on towards $1260.

Gold chart

Brent remains trapped
The price has recovered off the lows of the session for Brent, but remains trapped below the 50-hour simple moving average (SMA), $39.22. This moving average has now crossed below the 200-hour SMA ($39.39), so we may see bearish momentum increase.

A break below yesterday’s lows around $38.30 would then suggest a move back to the rising trendline that began back in February. A break back above $40 would put the commodity on course to test the recent highs above $41. 

Brent chart

WTI back above the rising trendline
The price shot higher yesterday afternoon for WTI, confirming that $36 is the level to watch on the downside. It is now back above the rising trendline from the February lows, so now the bulls need to push on above $39 to confirm that the rally is still in effect. In this case the next area to target is $42, the high from early December. 

WTI chart

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