Technical analysis: key levels for gold and crude

Gold’s rally has carried it back to highs for the year, while a recovery seems to be in play for oil prices. 

Oil barrels
Source: Bloomberg

Gold eyes $1436

Buying the dips has worked in gold since January, but the price is looking a little overextended, particularly since it is heading towards the July peak around $1380, where gains last faltered.

We now look to see if a breakout above here is possible, which would take it on to $1436. A turn lower could head back to key support at $1305. 

Gold

Brent could see 50-day SMA

The post-January rally has suffered its most serious pullback over the last few weeks, but a recovery may now be in place.

If the price can hold the gains of the past two days we may see it push back towards the key $46.20 level, and then on to the 50-day simple moving average at $47.90.

It would need a move below $42 to open the way to further declines for Brent.

Brent

WTI could drop to $35.20

A similar picture prevails here, with the $44.90 and then $46.50 levels the next areas to watch If the rally continues.

Below $40 the risk is that we see a bigger unwind down towards $35.20, potentially reversing the uptrend that has prevailed since February in WTI.

WTI

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