Technical analysis: key levels for gold and crude

Gold’s rally from the Friday lows has run out of steam, while oil remains becalmed in the middle of its recent range. 

Oil barrels
Source: Bloomberg

Gold could test $1174

Gold bears were afforded an excellent chance to short the metal, as the Friday rally hit $1195 and then fell back again.

This kind of price action would seem to indicate that a test of $1174 and then $1157 is likely, assuming that the sellers can break Friday’s low at $1180. Buyers need to push the price back above $1195 to indicate that a rally is at hand.

WTI awaits breakout from range

The end of last week saw the $54 resistance hold once again, so it looks like we are due a move to $52.80 and then down to $52. For the time being the $52-$54 range continues to hold, so we have a clear set of levels against which to trade.

We will need to see a breakout from one of these for a new direction to establish itself for WTI.

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