Technical analysis: key levels for gold and crude

Oil prices are fighting hard to rally after yesterday’s volatility but gold prices look under pressure once more.

Gold bars
Source: Bloomberg

Gold puts bears in control
The bounce yesterday meant that $1270 is the level to watch on the downside, but so long as the price holds below $1285 it looks like the bears are still in control.

A break below $1270 heads towards $1250 and then $1240, while a sustained rally has to clear $1300 to indicate a fresh breakout is on its way.

Gold daily chart

Brent set for further downside
A spike yesterday got decisively sold, so it looks like there is more downside to come for Brent. A break below $44 would confirm that more losses are in store, with the 200-day simple moving average at $42.50 a prime area to watch, and then below this $40.80.

Any bounce needs to clear $46 to be considered as a possible longer-term move.

Brent daily chart

WTI could continue weakness
If the price can clear $45 today then the consolidation in WTI may be at an end. However, continued weakness today would signal that the pullback from last week’s high continues, with a first move to $42.60 and then on towards $40.80. 

WTI daily chart

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