Technical analysis: key levels for gold and crude

Further losses for gold yesterday have followed on from the break of support earlier in the week. Meanwhile, oil has begun to move upwards once more.

Gold ekes out a small bounce

The price has managed to bounce from the lows, after further losses yesterday took gold to its lowest level since late July.

It has managed to bounce slightly but, given the strength of the move, it looks like rallies back in the direction of $1264 will continue to bring out the sellers. Below $1246, $1240 comes into play, and then the price risks a swift return to $1214. A close back above $1264 is needed to cancel out the more bearish outlook.

WTI resumes its march higher

The bounce off the 200-period simple moving average (SMA) of $56.32 on the four-hour chart has created a new higher low for WTI, and thus points towards the continuation of the rally.

The next areas to watch include $57.00, then $58.07 and $59.00. A bearish view would require a move below $55.67. 

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