Technical analysis: key levels for gold and crude

Gold is racing higher, while oil’s latest bounce seems to be in danger of fading once again. 

Gold bars
Source: Bloomberg

Gold could see $1171

The break above the monthly downtrend line will have had many gold bulls salivating yesterday. Today the metal has capitalised on those gains and moved up yet again, and while it looks overextended on the hourly chart, it is clear that pullbacks will continue to be bought.

In due course, we look towards upside targets towards $1158 and then $1171.

Dips towards $1132 would be a welcome sight for those who have missed the move thus far. 

Brent could look to 100-day SMA

The move off the lows caught many by surprise, but so long as it remains below $36 it looks unlikely that more upside is on the way.

In which case, the support levels at $33.33 and then $31.20 come into view for Brent.

If we do get a bounce through $36, then we look to $39.80 and on to the 100-day simple moving average at $42.22. 

WTI could find support at $31.54

The rally yesterday took us back to $33, but the bear case remains. The price failed to push on and remains firmly below the late January high, having gone nowhere near the downtrend resistance line.

In addition, it has dropped below the hourly uptrend, so we look to support at $31.54 and then $29.50 for WTI.

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