Technical analysis: key levels for gold and crude

Gold continues to stutter, while oil is drifting back from recent highs. 

Source: Bloomberg

Gold eyes $1240

Last week’s spike higher looks increasingly like an aberration in the general trend here. The $1240 mark is providing some support for the price but if this is broken (and then $1230, the lows from last week) then the risk is that the price undergoes a more significant reversal to $1200.

Some may opt to play the range for a possible bounce in the direction of $1270 or even $1280, but only a break above the latter restores the general uptrend for gold.

WTI could find support at 200-hour SMA

A modest pullback from the highs of last week is underway, but it leaves the broader uptrend intact. Support is possible around $39 (and the 200-hour simple moving average just below this) and then on towards the Tuesday low around $36.

A move to the latter would firmly break the rising daily trendline, but it might be that we see another bounce from here.

Only sustained price action below $35 really turns the outlook bearish for WTI.

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