Technical analysis: key levels for gold and crude

Gold has been under pressure all week, including today, while oil has rediscovered its rising daily trendline. 

Crude oil
Source: Bloomberg

Gold losing ground

The unwind for gold has been remarkable, wiping out all the gains since February. The next big area to watch is $1175, the third weekly support pivot.

A rally needs to clear $1200 and then $1220, but for the moment a rising dollar probably means that rallies will still be sold here.

WTI recovering

The recovery in oil prices came as a bounce off the rising trendline that has dominated since February last year. It is possible that this has cleared out all the weak longs and now buying can resume in earnest.

If $50 holds, we could be looking at a push back to $51.60 and higher. A drop back would need to close below $49 to indicate a really bearish development. 

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