Technical analysis: key levels for gold and crude

Gold’s rally continues, as risk appetite fades.

Gold smelter
Source: Bloomberg

Gold may pull back
The break through $1110 puts the metal on course for $1133 and the 200-day simple moving average (SMA). A continuation of this move would head towards $1140 and the long-term descending trendline.

The price does look overextended after its gains, so any pullback towards $1100 should be seen as a buying opportunity. Below this the price targets $1094 and then $1089.

Brent bounce may be over
The reversal yesterday might suggest the bounce has run its course. If downward momentum continues then the commodity will head towards $28.15 and then $26.30. A turn higher heads towards $31.90 and then $33.75.

WTI headed down
A continued move below $30 suggests the rally from last week is over, and that we should look towards $28 and then $27.66 as possible targets on the downside.

A bounce from current levels would need to clear $30.97, the 50-hour SMA, to put a more bullish sheen on the picture. 

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