Technical analysis: key levels for gold and crude

Commodities have steadied for now, but as ever with crude oil at the moment, the next fall is not very far away. 

Oil pump in action
Source: Bloomberg

Downward trend still in play for gold
Steep losses in gold yesterday found support around $1050, but the downward trend is still in effect.

The next target looks to be around $1042, and then $1032, once the December lows at $1046 have been broken.

A move higher will need to clear $1068 and then move on to challenge the month’s high at $1083. 

Brent bounces providing opportunity to sell
It really seems to be a case of waiting for the bounces to sell Brent crude again. Having risen off the overnight lows, new upside targets lie around $38.37.

It is at this point I would be looking for momentum indicators on the hourly chart to have moved towards the higher end of the spectrum (towards 70 for relative strength index and 40 for stochastics), to indicate the potential for a fresh leg lower. 

WTI in a similar state to Brent
A similar situation applies here, with targets around $35.20 and then $34.60 if the commodity begins to fall again.

Gains should be capped by the $38 area. 

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