Technical analysis: key levels for gold and crude

Gold still refuses to move below $1080, but oil looks increasingly precarious at current levels. 

An oil pump
Source: Bloomberg

Gold could rally after refusing to fall

The dip through $1080 yesterday saw buyers come back in, so while it can't be certain that a bottom is in place, today might mark the start of a rally for gold. This would be confirmed if we saw the price go back above the $1096 area, where the week's limited upward momentum petered out. A daily close below $1080 would then suggest that sellers are back in charge and the new target is the 2008 high of $1035.

Support stems Brent selling

After plunging through $46.50 yesterday, the price seems to have found some short-term support around $45. A bounce needs to clear the $45.75 level, which would then clear the way to the $46.50 area again. If the Brent price goes through $45 then the next target is the August low around $42.40. 

WTI rallies may be short-lived

Rallies here are likely to peter out around the $42.70 area, near the 50-hour SMA. If bullish momentum does increase then we look to the $43 and then $44 areas as upside targets. Support in any further drop in coming sessions is likely around $40.40 and then $39.20. 

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