Technical analysis: key levels for gold and crude

Gold is trying to form another base, having dropped through $1200 earlier in the week. Meanwhile, the oil rally may be fizzling out.

Gold bullion
Source: Bloomberg

Gold rally in the offing?

A swift dip in the early part of the session has been met by buying. If we see a close above $1190 it may be that a bottom is in, with a potential move to $1220 and then $1250.

A failure to hold gains and a drop through $1170 would open the way to $1110. 

WTI holding firmly above $47.20

Price action has failed to regain the highs of the week, but for now it is holding above $47.20, the lows from Tuesday. A close below here would also see the price drop below the rising 2016 uptrend, and would then target $45, followed by $43.

A close above $49 is needed to maintain the rising trend, which would then see the price head towards previous resistance at $49.53 and then $52. 

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