Technical analysis: key levels for gold and crude

Gold bulls have managed a rebound in the price, but now have to work hard to reinvigorate the rally.

Gold bars
Source: Bloomberg

Gold gains lacking but intact

The uptrend off the December lows is intact, although gains above $1240 have been lacking over the past two weeks. The next resistance areas to watch are $1246 and then $1261, with the latter being the 200-day simple moving average (SMA).

The rally over the final two days of last week carried the price back to $1245, but could not break higher. We have seen the price retreat to $1232 and the 200-hour SMA, so if this holds a new bounce may be in the offing.

Bears will want to see the price move below $1230 but it will need a definitive close blow $1220 or even $1215 to really sound the death knell of this uptrend. 

WTI remains range bound

Price action last week saw the commodity hold in the middle of the $52-$54 range, so with this potentially bullish sign we wait to see if the $54 - $54.40 area can be firmly broken. Above this lies $54.90 and then $55.50. An inability to push higher would signal the price is to remain in the range for another day at least.

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