Technical analysis: key levels for gold and crude

Oil prices are on the march lower again, while gold enjoys a bounce in the context of a broader move lower. 

Oil pipeways
Source: Bloomberg

Gold eyes $1095

With gold still looking to go lower, today’s bounce off the lows of yesterday should bring out more sellers, particularly since the hourly trendline off the highs of last week comes into play around $1090.

A turn back down from there would target $1080 and then $1073.

It would take a clear break through $1095 to suggest a new leg higher is in progress.

Brent could see fresh selling

Bounces are still being sold, so while the price tests the area around Thursday’s low at $29.70, a break below here will head towards $29.20.

Rallies back towards the 50-hour simple moving average ($30.65) have been the cue for fresh selling, so we should expect to see this repeated next week.

WTI breached $30

A similar pattern emerges here, and with $30 breached this morning downside momentum is back with a vengeance.

With hourly charts now oversold, a bounce cannot be ruled out, which will allow fresh selling to develop in time. 

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