Technical analysis: key levels for gold and crude

A pullback in gold leaves the trend intact, while oil is soaring once more. 

Oil storage
Source: Bloomberg

Gold remains bullish

We saw our first real pullback in gold yesterday, as the price dropped from $1264 to $1246, creating a new higher low and staying well above the trendline established earlier in the week.

It is likely that we will see buyers return, with a push back towards $1264 and higher opening the way to $1280 and $1300. Only a drop below $1240 really imperils the bullish move.

WTI pushing up

Dip buyers continue to be rewarded in WTI, with a push above the 50-day and 200-day simple moving averages (SMAs) today ($49.61 and $49.92 respectively).

The next targets to watch are $50.52, then the $51.50 area. A drop below $48.30 is needed to reverse the sequence of higher lows.  

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