Technical analysis: key levels for gold and crude

Gold is breaking higher this morning, ending days of consolidation, while oil prices are quiet ahead of NFPs. 

Oil pipeways
Source: Bloomberg

Gold could see $1306

Gold’s breakout above the February high indicates that the bulls have taken over once again. However, with the price now overbought in multiple intraday timeframes it would probably make sense to wait for another dip, perhaps back as far as $1240, rather than chasing this move.

On the daily chart, the way now seems clear for a move to the 2015 high of $1306. 

Brent could see support at $34.70

With the price stuck in a narrow range, we wait to see if buyers can push the price on beyond the highs for the week around $37.30 for Brent.

The $36 mark has provided support so far this week, while a more sustained dip towards the rising trendline off the mid-month lows would see support come in around $34.70.

WTI best strategy could be dip buying

If the price cannot sustain momentum today, then we look for a move back down towards possible support at $34.11 and the rising hourly trendline.

Dip buying may still prove to be the best strategy here, with a target for more upside towards the 100-day simple moving average at $37.11 for WTI.

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