Technical analysis: key levels for gold and crude

Oil is spiking again while gold looks at risk of a turn lower.

Mining truck
Source: Bloomberg

Gold nearing the top?

A reversal yesterday from $1245 may mark at least a short-term top, although oversold intraday conditions and the 200-hour simple moving average at $1221 are providing sufficient fuel for a rally.

We will have to see how the bounce is treated – if it moves towards $1235 and then runs out of steam we have a good selling opportunity, which could target $1211 and then $1197. 

Brent sees effects of production cuts 

The IEA thinks OPEC is getting somewhere with its production cuts, and this has been enough to send Brent racing above $56.

However, it remains in the two-month trading range, so unless it closes firmly above $57.50 the range is intact. Above $57.50 the price would head to $58.90. 

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