Technical analysis: key levels for gold and crude

Gold has recovered from weakness earlier in the week, while oil’s rally is back in action. 

Oil barrels
Source: Bloomberg

Gold uptrend intact

Tuesday saw the price of gold clamber higher, with more follow-through today. While the drop from Friday into Monday was dramatic, it created a higher low.

Therefore, this supports the idea that we will see a continuation of the trend higher from $1264 at the end of October. The new upside targets remain $1295 and then $1307, while a close below $1275 is needed to create a new lower low, and suggest that the bounce has run its course.

WTI moves back into rally mode

The WTI uptrend looks to have reasserted itself, with the high from earlier in the month at $58.07 being the next target.

Above this, $62.56 comes into play. A close below $55.00 is needed to create a new lower low. 

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