Technical analysis: key levels for gold and crude

Gold remains constrained by strong resistance, while oil continues to hold an eight-month rising trendline.

Gold fails to move higher again

Gold continues to bump its head against $1307, as previous key support turns into seemingly insurmountable resistance.

The short-term push higher from the May lows, marked by the rising trendline from the $1282 low, remains intact. This might suggest another push back to $1307, but bulls need a daily close back above this level to suggest a really bullish turn. A move below $1295 would negate the trendline and lose key horizontal support from the last few days, opening the way to the $1282 low.

WTI holds support

While the price fell back yesterday from its Wednesday high, WTI has held the $66.58 area, and in the process created a higher low from the $66.00 lows at the beginning of the week.

A push higher targets $68.70, the high from Wednesday, which will also bring it into contact with the descending trendline from the recent highs. From here, $69.54 and $73.00 come into view. A break below $65.50 would suggest a more bearish view, and crucially break rising trendline support that has held since October. 

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