Technical analysis: key levels for gold and crude

Another stellar rally for crude oil has put that commodity on the front foot, while gold appears to have found new buyers. 

Gold bars
Source: Bloomberg

Gold

We have been treated to some early strength in gold this morning, pushing through the $1255 that stymied gains earlier this week.

The next area is around $1263, the highs from 12 April, and if these can be taken out then $1270 and then $1280 come into view. The $1240 mark has provided support this week, so it will take a move below here to negate the positive outlook. 

Brent

A surge yesterday rewarded the dip buyers from the first part of the session, with fresh highs for the year being registered for Brent.

However, the price looks vulnerable now to some profit taking, and it may prove best to wait for another dip, back down towards $44 or lower. 

WTI

The rally through the March high of $42.64 confirms that buying pressure is still evident. However, it would be imprudent to chase the current move, with the better plan being to wait for another dip back towards $42 or even lower.

Nonetheless, with expectations of some sort of production freeze still swirling and continued bullish positioning in oil, we may see this bounce extend a little further before another dip appears for WTI

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