Technical analysis: key levels for gold and crude

Gold is enjoying another move higher today, while oil’s latest bounce fizzles out.

Source: Bloomberg

Gold moves higher
The move higher in gold this morning puts buyers back in charge, so now we look to the area around $1100 and then $1110. A break higher above $1110 would clear the way to a move towards $1134, the 200-day simple moving average (SMA). Any turn lower heads towards support at $1083.70, followed by $1080 and then $1071. 

Brent plunges
As oil plunges once more and the Brent crude price drops below the 50-hour SMA ($28.82), the pivot points on the hourly chart point to $27.48 and then $26.42 as potential targets.

Hourly momentum indicators are oversold once again, so a small snapback rally is possible, but these moves back to $29.81 and then $30.26 will be the cue for further selling.

WTI in oversold territory
A move back towards $29.17 would work off the oversold conditions on the hourly chart, with further resistance around $29.95 and then $31.13. Moves lower in WTI would head towards $28.11 and then down towards $26.85. 

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