Technical analysis: key levels for gold and crude

Gold’s bounce to $1300 has fizzled once more, but oil could be on the up yet further. 

Oil rig figure
Source: Bloomberg

Gold – will rallies continue to be sold?

Friday’s gold price action saw the commodity attempt to vault the key $1295-$1300 area, but it was defeated as it has been twice before.

This would seem to suggest that rallies will continue to be sold, with a first target of $1264. As major resistance, $1295, remains to any upside progress.

Gold chart

WTI bullish outlook for now

The WTI bounce off the 50-day simple moving average (SMA) last week was followed up by an impressive rally that seems to have reversed the outlook here.

Now we look to see if, after a pullback to work off its intraday oversold condition, the price can push back to $49.40 and then the 200-day SMA at $49.88. It will take some doing to reverse the bounce from Friday, and it is likely that only a shift back below $46.65 would reverse the bullish outlook. 

WTI chart

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