Technical analysis: key levels for gold and crude

Gold is beginning to lose the ground gained at the end of last week, while oil has paused for breath after a strong bounce.  

Oil pipes
Source: Bloomberg

Gold is faltering

Gold bulls staged a fightback on Friday but were unable to post new highs. Today the selling appears to be resuming, and on the four-hour chart a new lower high has been established.

A close below $1240 in this timeframe could open the way to the 200-period simple moving average (SMA) at $1234, and then down to $1219, with a drop below here raising the prospect of a move to $1195. Buyers will need to get the price back above $1250 and then $1260 to indicate a return of the upward momentum.

WTI sticks to the higher trend

The spectacular bounce of last week is beginning to run out of momentum in the short term, but the trend higher remains intact for WTI.

We look to see if any pullback creates a new higher low, with support potentially entering around $49.50. A push higher above the $51.20 level would open the way to the 50-day SMA at $51.64 and then $52.26. 

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