Technical analysis: key levels for gold and crude

Oil prices are rallying once again, but even gold appears to have discovered a new trend higher.

Oil barrels
Source: Bloomberg

Higher movements for gold
Gold bounced-off $1210 earlier in the week, and then pulled back to around $1220, before moving higher again yesterday. Having dropped back from the high overnight at $1240, the price may now find support around $1230, before moving on towards $1241 again, with further upside targets at $1260 and then $1277.

The 50-day simple moving average (SMA) ($1222) continues to provide support, so it will take a dip through here and then below $1206 to suggest further downside momentum.

Gold daily chart

Brent expects further upside
A swift pullback yesterday for Brent was then wiped out by yet another bounce, and with daily stochastics positive for the first time since the beginning of March, it look as if we can expect further upside here.

The next target is $42.30, and then on to the 200-day SMA at $43.83. A dip back to $39.50 should be seen as a buying opportunity, and it would take a drop through $37.50 to cancel out the broadly bullish hypothesis.

Brent daily chart

WTI sees a new uptrend
Buyers came back in late yesterday, and the price has now moved above yesterday’s highs around $38.20, which suggests that we are seeing a new uptrend. In this case, we look to $39 and then $41 as the next targets. 

WTI daily chart

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