Technical analysis: key levels for gold and crude

Gold’s surge continues, while oil is looking to build on the bounce from last week. 

Oil
Source: Bloomberg

Gold highest since US election

While indices turned lower, gold moved higher overnight, pushing to its highest level since the US election. Price action on Thursday saw dip buyers enter, so when combined with today’s developments further gains should be expected.

A pullback towards the 50-period simple moving average (SMA) at $1305 on the four-hour chart should be the kind of opportunity buyers will be looking for. Only a move below $1300 really negates the trend. 

Gold price chart

WTI getting bullish

Having steadily dropped over the past month, WTI has moved back above the 50-day SMA ($47.34), but it needs a daily close above $48 to move above the previous lower high. A close above that level will then target the $49.40 area and then the 200-day SMA at $49.91.

A close back below $47 could potentially negate the bullish outlook. 

WTI price chart

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