Technical analysis: key levels for gold and crude

For now the gold rally goes on, having broken above an important mark, while oil bears appear to be in control once more. 

Gold bars
Source: Bloomberg

Gold breaks key resistance

Gold succeeded in moving above key resistance at $1264 yesterday, and so far, a small retracement is finding support at this level.

The next target is the downtrend line that runs from the summer 2016 highs, which would suggest a move to $1280. Above this $1295 and $1307 come into play. A truly bearish development requires a move below $1255, to break the sequence of higher lows that has held since the May bottom.

WTI moving lower

Dip buyers pushed the WTI back to $50, but have failed to hold it above this level. Previous support at $49.40 could come into play, but overall it looks like the next move is lower.

A move to $48 and then $47.12 could be in prospect, while the negative view is only cancelled out if the price closes above $50.52. 

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