Technical analysis: key levels for gold and crude

Gold still seems to be poised for a move higher, while oil is consolidating after a big rally yesterday.

Lubricating oil barrels
Source: Bloomberg

Gold rally looks inbound

The bounce yesterday would seem to indicate a rally is in the making. The price has bounced off key horizontal support at $1200, plus the inside trendline from the late June high.

The next target is still $1250, with a longer term countertrend rally taking us on to $1320 and the descending trendline off the summer highs.

WTI seeks to shrug off its overbought conditions

After leaping higher yesterday the price is moving modestly lower. The price needs to work off its intraday overbought conditions, seen on the hourly, two-hour and four-hour charts.

A move could go all the way to $46.60, which would touch the rising trendline off the 13 November lows. Longer-term, the price now has to break $49.50 and then $52 to really reinforce the bullish outlook.  

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