Technical analysis: key levels for gold, silver and crude

Commodities seem to be running out of bullish momentum across the board today, with gold and silver particularly affected. 

Gold bars
Source: Bloomberg

Gold dip reverses last week’s gains
Today’s drop in gold puts the asset below its 200-day simple moving average – $1176 – once again, reversing the sharp rally we saw last week. The level to beat on the upside is now $1190.

Rising trend line support comes into play at $1170, with a close below this level threatening to send the metal moving back to $1162 and then on down to $1140. If the trend line holds then a bounce to $1190 would suggest a test of the area around $1210.

Silver falls but has plenty of support
Like gold, silver has fallen back below its 200-day SMA ($16). There is plenty of support below the current price in the near-term, at $15.80, then $15.72 and finally $15.60, so bears may find it hard to drive the price down.

Only a close below $15.40 really unleashes meaningful downside momentum. A close above $16.20 would undoubtedly be bullish, putting the price above the 200-day SMA and above key resistance, opening the way towards $16.80 and then on to $17.15. 

Brent crude back below $50 a barrel
The move back below $50/barrel rather upsets the bullish outlook on Brent crude, but at least the 20-day SMA at $49.50 is still holding as support. Below that, the 50-day SMA at $48.75 also comes into play.

If the price can move back above $51 in coming days then we may see a bullish move develop that could take the price back towards resistance at $54. 

WTI looks like it may bounce
Despite the drift lower from Friday’s highs, we may still see a bounce in US light crude. Rising trend line support comes into play around $46.85, coinciding with the 50-hour SMA.

A first target on the upside will be the 200-hour SMA at $47.94, and a break through here would target the 13 October highs around $48.50. 

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