Technical analysis: key levels for gold and crude

Oil continues to push lower, while gold has hit key support.

Gold bullion
Source: Bloomberg

Gold
Gold bulls will not have been pleased to see the 50-day simple moving average (SMA) – $1250 – so soon after the late April surge. However, if they can hold this area then a bounce towards $1265 may materialise.

A break below $1250 would head towards $1220 and then the 100-day SMA at $1210. Any failure to close above $1265 however, would raise the risk of fresh selling. 

Brent
For now the Brent crude $48 area is holding, but a move below here risks a drop to $47.40 and then $46.50. Momentum on the upside has been distinctly lacking, so we would need to see a daily close back above $49.50 to confirm that more gains are on the way.

Longer-term, the trend remains upwards, but we may need a more sustained dip to tempt it more bulls.

WTI
WTI needs to close below $47.50 to confirm a new downtrend has really begun, but the outlook will remain bearish so long as it is unable to move above $48.

The next target on the downside would be $47, with further support possible at $46. A new bullish trend would need a move above $49.50. 

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