Technical analysis: key levels for gold and crude

New bearish moves in oil confirm the downtrend in this commodity is still very much with us. 

Gold bars
Source: Bloomberg

Gold is looking up
Having pushed through resistance around $1080, the price is now heading onwards to $1090, above the December peak. A continuation of this would push on to the key $1098 level, which was resistance in mid-November and support in early September. Pullbacks are likely to find support around $1073 and then $1064.

Brent bounces fails to beat off the bears
A fresh multi-year low this morning just goes to show how weak the ‘bounce’ seen at the beginning of the week really was. $36 was the key support level in late December, and with that now broken we look towards $34.67. We have had the bounce, and it looks as if the bears are back in control once more.

WTI bulls offer a little hope
For WTI bulls, there might be a little hope, but not much. Daily momentum indicators have turned sharply lower, which suggests the market is back in ‘sell the rally’ mode. Support is possible around $35 and then $34.26, but given the bearish pressure overall these are unlikely to hold for long. 

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