Technical analysis: key levels for gold and crude

Gold continues to suffer losses, while WTI is back below a key downtrend line. 

Oil
Source: Bloomberg

Gold fights to hold support

Gold has been helped off its lows by a modest rally, but unless it moves above $1291, it is merely another bounce that will find fresh sellers. The lows of the week at $1268 still hold for now, but if broken then $1264 and then $1250 come into play.

Latecomers should be careful, since the price is now heavily oversold, with momentum indicators potentially moving towards a bullish crossover within the context of the December 2016 uptrend.

Gold chart

WTI rally falters

WTI has had a tough time of it, as the breakout turns sour and the price moves back below the downtrend line. But this may not be the end of the rally. If the price can hold the $50 area, then intraday oversold conditions may prompt a rebound, but this will need confirmation with a daily close above $51.

Further losses would suggest a test of $49.40 and then on down to $47.41.

WTI chart

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