Technical analysis: key levels for gold and crude

Oil prices have hit fresh highs for the year, while gold is once again attempting to push on through $1250.

Gold bars
Source: Bloomberg

Gold moving higher
Prices are moving back to the top end of the range, with the key $1250 - $1265 area now in prospect. However, it needs a breakout above $1260 to confirm that we are looking at a move back to $1280. Otherwise, the rally could peter out and then move back down towards $1220.

Brent puts bulls in charge
Having hit a fresh high for the year it would seem that the buyers are firmly back in charge. With the price now firmly overbought intraday, and with so much data out in in the next few hours, it may be that the price moves lower, perhaps down to $45.50, or the 50-hour simple moving average (SMA) at $45.14.

The probability of a drop back down is heightened by the fact that the price is now at the late November high of $46.50, so this resistance needs to be cleared for any further advance.

WTI aims for November high
Having pushed on to new highs for the year, WTI now looks to move in the direction of the early November high at $48.30. The trend for April is a firmly rising one, so with the price overbought intraday it may prove to be sensible to wait for a bigger pullback, down to the 50-hour SMA at $43.55, rather than chasing the move of the past 24 hours. 

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