Technical analysis: key levels for gold and crude

A stronger dollar has sent gold plummeting, while oil is trying to hold its ground after a strong run higher.

Gold bullion
Source: Bloomberg

Gold may be in for a rebound

Gold’s attempt to build a base above $1200 for a move higher was rudely interrupted yesterday. With the price now below this key support we could see a move towards $1110.

However, with the price so heavily oversold some kind of rebound, if only as far as $1220, is still possible. If a rally does materialise, it could go as far as $1250 in the short-term. 

WTI uptrend remains intact

The uptrend remains intact, with weakness yesterday still being bought.

However, the price now needs to maintain momentum, and push on above Tuesday’s highs above $49, and then on through the key $49.50 area.

A downtrend would arguably begin if the price drops through $47. 

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