Technical analysis: key levels for gold and crude

Oil’s retreat continues, while gold might finally be seeing some strength.

Oil rig
Source: Bloomberg

Gold could retest $1160

Gold bulls might finally be seeing a light at the end of the tunnel. A firm base has been built above $1160, and yesterday’s move higher did see it try to clear $1180.

This level is the first step, but a real rally needs a daily close above $1200. A failure to do so leads to a retest of $1160 and then lower.

Brent could drop to 200-SMA

The price is now back below $54, so the possibility is that we see a move back to $50, or even down to the 200-day simple moving average (SMA) at $48.48.

A rally would need to get back above $54, and then challenge the recent high at $55.65 for Brent.

WTI eyes $52

A steep drop yesterday intensified the pullback from the highs seen on Monday for WTI.

A fresh drop should head towards potential support at $49.50, and then down to $48.40. A rally has to clear $52 and then take out Monday’s high at $52.89.

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