Technical analysis: key levels for gold and crude

Gold is aiming to hold a vital area of support, while oil’s bounce on Friday raises the prospect of more gains. 

Gold mirrors late October pattern

Gold has tested, but held above, the 200-day simple moving average (SMA) at $1272.90 for the past four sessions. This mirrors the pattern seen during the last few days of October.

Dips towards $1270.00 continue to be bought, so long positions with stops around here could provide a way of playing a bullish view. Below $1270.00, the price will head towards $1264.00, which has provided strong support since the beginning of October.  

WTI in pullback from downtrend

WTI broke through the short-term downtrend identified on Friday, and the pullback currently in progress could provide an opportunity for new long positions.

The price failed to create new higher highs, faltering at $58.88, but a push higher is likely to test the $59.02 high from two weeks ago. The support zone last week was $57.00, so sellers will need to clear this to open the way to $55.67. 

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