Technical analysis: key levels for gold and crude

Gold and WTI both continue to exhibit excellent trends, albeit in different directions. 

Gold figure
Source: Bloomberg

Gold - is the current rally at an end?

Is a repeat of April at hand? In that month gold surged to $1295 before beginning a rapid decline. Yesterday saw the price fall from this resistance point, but it is surely too early to worry that the current rally is at an end.

We would need to see further declines below $1280 to become more negative in the short term. A surge beyond $1295 will take it to $1307 and on to $1350.

Gold chart

WTI - rallying back to $47?

Selling into strength worked a treat over the past two days, as a rally to $48.50 brought out the sellers, while a surprise jump in crude stockpiles sent WTI slumping.

With the price having created a new lower low in this hourly downtrend it may now rally back towards $47, but as long as it stays below $48.50 the sequence of lower highs remains intact. 

WTI chart

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