Technical analysis: key levels for gold and crude

Gold continues to retreat from $1200, while oil has found fresh support for both Brent and WTI. 

Source: Bloomberg

Gold could see a move to $1170

It looks increasingly like gold has overreached itself. Having spent two days trying to move on beyond $1200, the rally has apparently spent itself.

A move below $1180 would open the way to $1170 and down towards the rising daily trendline.

With daily momentum indicators such as relative strength index and stochastics now bearish, the most effective course may be to sell on strength as bounces appear.

Brent could move to 200-hour SMA

Oil prices have stabilised off the lows seen yesterday around $30.50. A continued move higher will target $32.24, the lows of 2/3 February.

Above here the price will target $32.80, and then on to the 200-hour simple moving average at $33.99.

Any drop below $30 would open the way to support at $29.54, then $28.30 and the lows of January around $27.10 for Brent

WTI could see support around $27.21

US crude bounced off $27.74 yesterday, the same area as in January, suggesting that buyers have re-entered in strength.

A continuation of this upward move takes the price back to $30, and then to $32, where it will encounter the descending trendline that has capped gains since November 2015.

Below $27.74 the price would head towards $26.05, with some possible support around $27.21. 

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