Technical analysis: key levels for gold and crude

A stronger dollar has done little for gold, but better US job numbers have proved to be beneficial for oil prices. 

Source: Bloomberg

Gold could see 100-day SMA

Friday’s sharp reversal raises the possibility that we will see a further drop towards $1305 and the support level seen in July. A break below here would see a move to $1280, the 100-day simple moving average (SMA).

Such a dip would still be seen as a possible buying opportunity, as the 2016 rally goes on, with a break above $1380 taking the price on towards $1425 for gold.

WTI could hit $47.10

Another move higher is in progress here, helping WTI to regain some of last week’s losses. A move above $42.60 would suggest the next target is $45, while above here the price looks set to hit $47.10.

It would take a move below $40 to cancel the more bullish outlook, and in this case the next target is around $35, last seen at the beginning of April. 

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