Technical analysis: key levels for gold and crude

Gold and oil have both enjoyed strong short-term trends, with no sign of reversal in either yet. 

Gold figures
Source: Bloomberg

Gold May low still a possibility

Gold continued to move lower yesterday, with the next targets on the downside being $1246 and then $1237, the 100-day and 200-day simple moving averages (SMAs) respectively.

We would need to see a move back above $1265 to suggest a bounce may be in play. The May low at $1213 is still a possibility should the current retracement continue.

WTI bearish outlook continues

A 14% decline since the May peak shows no sign of stopping, with the current intraday rally still being a countertrend move in WTI.

Only a move back above $47 reverses the current bearish outlook, with $44.50 the only support before the price returns to the May low at $44. Below this we have $42.81, the November low.

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