Technical analysis: key levels for gold and crude

Gold and oil could not have had a more divergent week, and the stark difference looks set to persist. 

Source: Bloomberg

Gold shows no sign of rallying

Gold continues to see intraday selling, as each rally fizzles out. Indeed, the price has recorded a lower intraday high since Tuesday.

A move above $1261 would be a first step, and then above Monday’s high at $1272. This would suggest a bottom is in for now, at least within the context of the current downtrend from the April highs. Possible near-term areas of support are $1245 and then $1236.

WTI puts on yet more gains

The speed of the WTI rally has surprised many, but it confirms that the ‘path of least resistance’ for oil is still higher.

Short-term pullbacks intraday may find buyers, and even a broader dip towards $68.50 would still provide another possible entry point for longs. The next areas of possible resistance come in at $74.95 and then $77.28. 

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