Technical analysis: key levels for gold and crude

Gold prices remain under pressure, while oil has rallied once more, clambering off the lows of last week. 

Source: Bloomberg

Gold could see support at $1180

Friday’s bounce petered out below $1240, and so the failure to push on beyond Thursday’s highs raises the prospect that $1200 will be tested again.

If the price moves below this then the next area to watch for gold becomes the rising daily trendline, with support potentially entering around $1180.

Below this the next target is the 200-day simple moving averafe at $1131.

Any bounce must clear $1240 to be in with a chance to test the month’s highs above $1260.

Brent eyes $36

Friday saw some support come in around the 200-hour SMA at $32.76 for Brent, so while we hold above this the next target is the $35.60 area, around the highs of last week.

A break above here still needs to clear $36 to signal more longer-term upside. Moves down will target support at $32.24 and then $31.82, with a more serious downward move heading towards the month’s lows at $30.

WTI could see 100-day SMA

The move off the lows of Friday has stalled below the 50-hour SMA ($32.67), but if the price can push on above key resistance at $34 then the way will be clear to a real surge.

We would look towards the 100-day SMA at $38.38, which is also vital resistance from late December.

Any move back lower will head towards support at $30.46 and then $29.57 for WTI.

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