Technical analysis: key levels for gold and crude

Gold could be showing signs of bottoming out, while oil is fighting hard to hold $49.

Oil barrels
Source: Bloomberg

Gold gathering support

It is still too early to say whether gold has bottomed here, but we have seen some support develop around the $1260 zone.

For now the downward trend remains intact on the hourly chart, and a push below $1260 would create new lower low. If the price can regain $1270, we may see the beginning of new bullish momentum, although it would be better to see a push back above $1276 to provide confirmation. 

WTI forming a base

Since 21 April the WTI price has found firm support around $49, which could suggest that a base is forming here.

Momentum is now heavily oversold, but we have yet to see a move back above $50 that would be a necessary prerequisite for a longer-term bounce in oil. More support could be found at $48, at the rising trendline. 

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