Technical analysis: key levels for gold and crude

Gold’s run seems to be at an end, while oil is looking ripe for a pullback within its current bounce.

Oil pipeway
Source: Bloomberg

Gold eyes $1130

The commodity is testing the rising trendline once again, and with the sharp reversal from the highs of Wednesday a new downtrend may be beginning.

If the price moves through support at $1108 then this would indicate that the next areas to watch are $1103 and then $1094.

Meanwhile, any bounce above the rising hourly trendline would target the week’s highs around $1127 and then on to the long-term downtrend line at $1130 (and the 200-day simple moving average).

Brent RSI edging lower

Yesterday saw a savage rally, taking the price briefly above $36, but for now this level remains in place as resistance.

A move above for Brent would target the 50-day SMA at $37.25 and then the longer-term downtrend line at $38.40.

The price is now some 10% away from the hourly trendline, and with the hourly relative strength index edging lower it looks like a pullback down towards $32 is in store. 

WTI coulp drop to $31

Gains have petered out around the $34 mark, so with intraday charts now oversold a pullback down towards the rising trendline at $31 seems likely.

This might then provide WTI another opportunity to jump on board the upward move, but if the price stays below $32 it seems like the bounce has run its course. 

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