Technical analysis: key levels for gold and crude

Gold’s retreat continues, while oil has slumped back below $40 for the time being. 

Oil rig
Source: Bloomberg

Gold

Dollar strength continues to hamper gold, with the price now below the key $1220 support and now heading rapidly towards $1200 and the still-rising 50-day simple moving average.

A break below here threatens to push the price on towards $1160. Any recovery has to get back above $1250 to mark a definite turnaround. 

WTI

Those thinking this marks the beginning of a real sell-off would do well to remember what happened last week, when the price stabilised at $36 and then rallied hard.

If bulls can mount a defence of $39 the outlook could still be bullish for WTI, with a move back to $41 and then $42.60. A break below $39 takes the price on to the 15 March low at $36.

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