Technical analysis: key levels for gold and crude

The rally in gold is back, but for oil it is, once again, proving impossible to break higher. 

Source: Bloomberg

Gold rallying again

New yearly highs in gold underscore the strength of this rally. Overbought intraday conditions and a looming weekend should cause bulls to stay their hand, but for the time being, dips should continue to be bought.

The previous resistance at $1245 could be a first area of support if the price falters today, with a bigger drop potentially testing $1230. Upside targets now lie at $1256 and $1274. 

Brent stuck once more

Once again the $57.50 area has held back Brent crude gains, despite two impressive attempts this week to break out.

Intraday stochastics are now so heavily oversold that a bounce is practically inevitable, but as long as it remains below $57 we should see further declines next week. 

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