Technical analysis: key levels for gold and crude

Oil prices remain on a high following the OPEC news, but gold remains unable to push higher. 

Gold bars
Source: Bloomberg

Gold eyes $1200

Gold bulls have not had a fun week, with an apparent bottom giving way yesterday. For now the price is holding just above the lows of last week, at $1170.

It needs to hold this to avoid a swift drop towards $1110. The $1200 mark is still the level to beat on the upside, and for now it looks like this is too much to ask. 

Brent could see a drop

OPEC’s decision to get its act together has put the buyers back in charge here, but it is possible that we'll see some retracement for the time being.

Indeed, a rising trendline off the lows of 14 November would suggest that we could see the price drop all the way to $48.50 before a real bounce materialises for the commodity.

Buying dips is the prudent approach here, with the price being heavily overextended intraday.

WTI could move back to $48

The price needs to hold definitively above $49.50, which would then allow it to move towards $52 for WTI.

A failure to hold gains today could see a move back to $48, or even towards $46.50. The price is still in an uptrend from the November low, but post-OPEC disappointment should not be ruled out. 

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