Technical analysis: key levels for gold and crude

Oil prices seem to be heading lower, as bullish momentum dries up. 

Man inspecting oil barrels
Source: Bloomberg

Gold at risk of moving lower
Gold progress beyond the $1130 area has been absent over the past week. While the hourly uptrend is still holding, the risk is that the price begins to move lower, down towards support at $1120, and then potentially down to $1112, and the lows of last Friday.

The 200-day simple moving average ($1131) and then the monthly downtrend line stand in the way of any further gains, but if it is broken then the next target is $1137 and then $1145. 

Brent rally looks to have stalled
The failure to push on beyond $36 suggests that the Brent rally has stalled. The hourly uptrend still holds, so until the price moves back below $32.50 there is room for another bounce, but a daily close below $32.50 would ignite a move down to $31.22 and then $30.

The sharp drop yesterday in WTI suggests the sellers are back. While we may see a bounce back towards $31.50 on the intraday charts, it looks increasingly like the next move is lower, down towards $30.50 and then $29.68. The January low around $28 are lurking in the background. 

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