Technical analysis: key levels for gold and crude

Gold is clinging on above key support, while oil’s consolidation looks to be resolving to the upside. 

Gold bars
Source: Bloomberg

Gold needs to hold $1214 to bounce

Gold steadied itself yesterday, but with the US back in earnest today we are likely to see more movement.

As long as the price holds $1214, a bounce is possible, but it will need to break the downtrend line with a move back above $1240. A close below $1214 opens the way to $1195.

WTI pausing for breath

It is not surprising to see a pause develop for WTI after a near straight-line move over the past two weeks. It seems sensible to expect another move higher, as the consolidation of the week so far resolves.

A move above $47.43 would be the cue for a new breakout, while the bullish outlook persists unless we see a drop below $46.

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