Technical analysis: key levels for gold and crude

Having pushed higher yesterday, oil prices remain steady, while gold is looking to move on towards the recent multi-month high.

Gold bars
Source: Bloomberg

Gold looking bullish
The gold open above $1240 this morning should be taken as a cautiously bullish development, and so we look towards recent resistance around $1248/$1250.

Beyond here the next target is the February high around $1263. Support comes back in around the lows of yesterday at $1225, and then on down towards $1215.

Brent stalls
The Brent price has stalled again after a modest up-day yesterday, so a move back towards $36 may provide another buying opportunity.

A move through $37 takes us on to the 100-day simple moving average at $39.20. Only sustained price action below $35.50 would suggest that the bounce has run its course.

WTI continues to climb
The steady trend higher continues, although so far we have yet to see a move above $35. However, the most prudent move still seems to be to wait for another dip to buy, rather than selling the highs.

Moves back to $33.70 would provide a test of the current rising trendline, with a more attractive risk/reward than at current levels. 

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