Technical analysis: key levels for gold and crude

Oil could be on the cusp of further losses, given its price action in recent days, while gold is looking to build on its breakout from last week.

Source: Bloomberg

Gold could see $1295

The breakout last week above the long-term descending trendline bodes well for gold, so long as it can hold the $1275 area. A close below $1270 would mark a bearish development, and raise the prospect of renewed losses.

Gold appears to be at a crossroads, and it would better to see a move above $1295 to be more comfortable about the likelihood of further gains.

WTI could see $50.52

Price action looks to have turned bearish once more here, with the commodity dropping back to key support around $47.40. Below here it would target the 50-day simple moving average (SMA) at $46.55, and then on down to $42.80.

A daily close back above $50.52 would be needed to put a more bullish spin on things.

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