Technical analysis: key levels for gold and crude

Friday’s price action means that the bullish outlook for crude is retained, but for gold a turn could be at hand. 

Gold bars
Source: Bloomberg

Gold about to turn lower?

Friday’s rally got crushed in the latter half of the session, leaving gold under the crucial $1264 level and stuck below the 200-day simple moving average (SMA) at $1256 for yet another session.

The next area to watch on the downside is $1240, and then below this to the 50-day SMA at $1234. Following on from this, we have the rising trend off the December low, which would suggest a move back to $1230. A rally has to clear $1264, and then break Friday’s high at $1271.

WTI still bullish

Although Friday’s session finished off the highs the uptrend remains intact. It looks like we will see further gains, if WTI can clear the $53.19 high, leaving the way clear to $55.67.

The short-term trend off the March lows remains intact, and it would need a firm drop below the $51.34 level to even suggest that the bulls have lost control. 

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