Technical analysis: key levels for gold and crude

Gold continues to push higher, but oil prices are still seething with disappointment about yesterday’s excitement over a potential output freeze.

Gold smelter
Source: Bloomberg

Gold makes minor gains

Tentative gains have been seen this morning, although for now the price remains unwilling to push beyond $1330. A move through here would then come into contact with the 50-day simple moving average (SMA) at $1337, and a rise through this level would then put the commodity back on an upward trajectory to $1380.

The key support remains at $1305 remains, but buyers may wait for more sustained intraday weakness before taking a position.

Brent stabilises

After the excitement of yesterday, the price has been relatively calm, but following some early gains it looks like bullish momentum is fading.

A move below $47 would indicate the sellers remain in control, although they need to push below $46.50 and then head towards $45.50, the lows of last week. A bounce has to clear $48, and then head on to break the $49 peak seen yesterday. 

WTI continues to lose

The declining trend goes on here, as hopes of a bounce fade. Any rally has to clear $46.50, the peak from yesterday’s Saudi/Russia-related news.

The next target on the downside would be $43, the lows of last week, with a move below here opening the way to $40.92 (the 200-day SMA) and then the early August low at $39.26.  

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