Technical analysis: key levels for gold and crude

Gold is fighting hard to build a base, while oil prices remain stuck in their current trading range.

Oil pipeline
Source: Bloomberg

Sellers keep probing the downside around $1320/$1325, but so far this level is holding. If a base develops around here prior to a move higher, we could be looking at a test of $1350 and then $1375.

A break below $1320 would head towards $1305 in the first instance, and then down to the 50-day simple moving average (SMA) at $1286.

The price has headed back to the $46/$46.50 area that has prevented further sell-offs of late. If recent history repeats itself, prices may be setting themselves up for a bounce towards $48.

A break above here targets $50.90. Any move lower would test support around $44, last seen in early May.

Weakness here has put the price on a pat to test support at $44.50/$45, where the downside has stalled in recent sessions. The top end of the current range lies around $47, where the bounces of 12 and 15 July ran out of steam.

Overall however, the pullback from the June highs continues, with strength still being sold. 

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