Technical analysis: key levels for gold and crude

Much attention has been lavished on oil prices this week, with the result that volatility has been seen in spades. Meanwhile, a rising US dollar has hit gold hard. 

Oil rig
Source: Bloomberg

Gold eyes move to $1305

With the US dollar back in fashion gold has taken a turn for the worst, with the price having stalled around $1345 at the end of last week. Now we look to see if the price will continue to head to $1305, the lows of last week and vital support for the price since June.

Intraday the price is now heavily oversold, so we may see a bounce materialise, offering a chance for shorters to get in at more attractive levels. A move back towards $1332 may provide that bounce. 

Brent could move to 200-day SMA

Oil has not been one for the faint-hearted of late, and brent has seen whipsaws in the range $46-$48.50.

Having hit the bottom-end of the range it is now pressing higher, although it will need to clear $48.50 to indicate a real breakout. A failure to push on could lead to another test of support at $46, and then down towards the rising 200-day simple moving average (SMA) at $44.90. 

WTI could test mid-September lows

Having stabilised above $44.50 this week we could see another push higher. Despite all the volatility the commodity is still in an uptrend off the lows of 16-20 September.

Now we look to see if the price can push through previous highs at $46.50. A break below $44.50 would lead to a test of mid-September lows at $43. 

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