Technical analysis: key levels for gold and crude

Gold remains under pressure, while an oil rally yesterday brought out fresh selling. 

Gold mining
Source: Bloomberg

Gold’s rallies will continue to be sold

Gold rallies have been firmly sold since late February, and there seems little chance that will change that for now.

A move back to the descending hourly trendline, or to the 50-hour simple moving average ($1224) would provide another chance to short, with only a move above $1235 indicating a base has been formed here. Further downside targets lie in the direction of $1200 and then $1175. 

WTI on the reverse

Crude’s rally back to $54 suffered a sharp reverse yesterday, continuing the trend lower and establishing a new lower high.

The WTI price remains heavily oversold intraday, so a bounce is possible, but it looks like a move to $52 is on the cards once again. 

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