Technical analysis: key levels for gold and crude

Gold’s slump yesterday confirms that the sellers are still in charge, while oil prices may not be ready to roll over just yet.

Gold
Source: Bloomberg

Gold heads lower
Yesterday’s swan dive in gold prices marked yet another session where the price failed to break through and hold above $1250. As a result the price looks to be rolling over, with a close below $1243 leading to more downside.

Targets from here are likely to be around $1217 and then $1201, with traders likely to sell into strength. Bulls would need a close above $1255 to suggest that a bigger upward move is in play.

WTI in the balance
While the price has dropped back from its highs of the week and the year, there is still the possibility that it bounces once again, moving on to $44.48 and potentially higher.

It would take a close below $42.50 to suggest the rally is at an end, at which point we may look to sell into strength for a possible return to the 200-day SMA. A close above $44.30 would suggest the price is heading on towards $46.20. 

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