Technical analysis: key levels for gold and crude

Gold continues to rally, while oil prices remain relatively quiet ahead of inventory data later today.

Oil pump
Source: Bloomberg

Gold continues to rise
Gold’s rally over the month has gone rather parabolic over the past couple of days, but the rising hourly trendline still holds. The daily chart shows the $1120 area has stifled progress, but a move back above here targets $1133, the 200-day simple moving average and then the monthly descending trendline at $1135. Dips back towards $1110 should be seen as possible buying opportunities. 

Brent looks up
Moves above $32 have proved short-lived for Brent, with this level and then $32.80 acting as resistance. A break above $32.80 would target $34.50 and then $36, the key December support level. Downside targets lie around $29.34 and then $27.57. 

WTI may bounce
If the price pushes below $29.13 then we may find ourselves at the start of a new leg lower, which would suggest a move back down to $28 and then $27.60. Should this area hold, then a move back towards $32.30 is still possible, which would pave the way for a test of upside targets around $33.92 and then $35.44. 

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