Technical analysis: key levels for gold and crude

Gold continues to look like it is about to move higher, but oil’s drop yesterday points toward more downside. 

Gold bars
Source: Bloomberg

Gold comfortably high

Gold has stabilised above $1220, and with further momentum we can expect a move above $1229 and then to $1254.

Dips should continue to be bought, with possible support at $1210. A reversal below $1200 is needed to put the price back on a bearish trajectory.

WTI descending

The WTI drop back yesterday from the lower high confirms the bears are still in control.

We now need to see a push back below $47.50 to suggest further downside and create a new lower low. However, as long as the price remains below $50, it looks like further losses are in store here. 

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