Technical analysis: key levels for gold and crude

Gold is fighting hard to hold above $1220, while WTI looks set for further moves lower.

Oil barrels
Source: Bloomberg

Gold struggling and more downside possible

We continue to wait to see whether gold can break below key support at $1214, to create more downside.

Good short-term support was provided at $1217-$1221, but a bounce will need a break above $1229, where gains stalled earlier in the week. Longer-term, $1240 and then $1255 are the areas to watch on the upside.

WTI continues the breakdown

The breakdown goes on for WTI, although the price has yet to break the $44.67 low from Wednesday. If that happens, we look for a move back down towards $42.

A rally needs to clear $46 and then push above the 50-day simple moving average (SMA) at $47.02. 

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