Technical analysis: key levels for gold and crude

Oil prices have revived but gold’s descent shows little sign of stopping. 

Oil rig
Source: Bloomberg

Gold

There seems little end in sight to gold’s bear run, having smashed below the 50-day simple moving average and continued to retreat towards the 100-day SMA at $1213.

During March and April the $1220 area stemmed downside movements, so bulls will be watching this, but given the rapid break lower of recent days it is still likely that rallies will be sold. The next target below the 100-day SMA is $1180.

Brent

The price is heading back towards $50, the highs from earlier in the month, so bulls will be watching to see if a fresh breakout can occur. The next stop above here would be $50.91.

It would take a move back below $47.50 to negate the expectations of fresh bullish momentum for Brent.

WTI

Here too, recent resistance is about to be tested again, although with intraday prices overbought and crude inventories up later profit-taking may occur to some degree.

The next target in any further bullish move is $51, the high from October 2015, while above this WTI's price will encounter possible resistance at $53.90. 

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