Technical analysis: key levels for gold and crude

Gold has found some bullish momentum, while oil is attempting to rally after a bearish end to the week. 

Source: Bloomberg

Gold heading back up

The spectacular downtrend for gold may well have come to an end, with a reversal from below $1200 seeing further moves higher. The 9 March high at $1209 has been taken out, with a drop back this morning finding support around this point.

As long as $1200 holds we should look for further upside here, towards $1220 and then $1226. A renewed drop below $1200 would head towards $1170.

WTI in a surprise drop

Friday saw the oil price close below the rising trendline that began back in February 2016, and this has continued today.

The sharp drop has caught many by surprise, and if the price cannot recover to $50, then we look for further weakness, down towards $46.94 and then $45.12. A rally above $50 would then target the 100-day simple moving average at $51.31.

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