Technical analysis: key levels for gold and crude

While equities rally, gold has taken a knock. In the meantime, oil is looking to recover from steep losses on Friday.

Source: Bloomberg

Gold momentum has slowed

Gold's steady ascent since late July has run into a roadblock, with a gap down taking the price below the $1337 level.

Given the steepness of the trend since July, we could see the price head all the way back towards $1300 and still be in an uptrend. Support is possible around $1326 and then at the 50-period simple moving average (SMA) at $1312.

WTI facing a bearish outlook

A sharp reversal for WTI on Friday could mark the start of a new drop, so it will be up to buyers to step in and keep the price above $47.40. A close below this level would be a bearish development, and raise the prospect of a move back to $46.00.

If buyers can move the price higher and back above $48.50, we will wait to see if they can reclaim $49.50. Above here, the 200-day SMA at $49.90 comes into play, and then the $50.50 level. 

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