Technical analysis: key levels for gold and crude

Oil’s bullish run is still in full flow, with dip buyers earlier in the week firmly rewarded. 

Gold bullion
Source: Bloomberg

A gold recovery overnight confirms sellers are not having it all their own way. However, any rally is likely to be constrained by $1285, which is downward sloping resistance from the highs at the beginning of the month.

Bears will likely get little traction unless the price moves below the 50-day simple moving average at $1250.

The price has stabilised above $46, so as long as this holds we may see another push towards yesterday’s high at $47, before the next target at $48.27.

The outlook seems promising for further gains, with the $51 area next on the list if the rally gains momentum.

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