Technical analysis: key levels for gold and crude

Gold has failed to capitalise on Friday’s upward move, while oil is off the lows in the wake of Iran’s return to crude exporting.

Gold
Source: Bloomberg

Gold eyes $1110

The bounce late last week gave hope to bulls, but the price was unable to push on through $1095.

If it remains below this level then it seems we may be seeing another selling opportunity, with a target around $1081, and then on down to $1070.

A break below the Thursday low heads to $1060. Any rally through $1098 would head towards $1110, the highs of January.

Brent could head towards 50-hour SMA

After a steep open lower, Brent has pushed off the lows, holding a line around $28.

If the price closes the opening overnight gap, then a bounce back towards the 50-hour simple moving average ($30.43) cannot be ruled out.

This would, however, be the signal for more selling, with those expecting further declines perhaps best served by waiting for the hourly relative strength index and/or stochastics to move back towards overbought levels, rather than the current oversold conditions that prevail. 

WTI could test $27.50

A similar picture prevails here in WTI, but so long as the price holds below $30.62 then the likelihood is a move back to $29.49, and then tests of support around $27.50.

The bearish picture prevails unless the price clears the 200-hour SMA around $32.14. 

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