Technical analysis: key levels for gold and crude

Gold prices have consolidated after two days of gains, while a breakout in oil prices looks to point towards a fresh upward move.

Oil steam injection pipe lines
Source: Bloomberg

Gold seeks bullish momentum
Two days of gold gains have given way to small losses, but if the price can hold above $1270, we may see fresh bullish momentum develop.

Upside gains may be contained by the downtrend line off the highs from the beginning of the month at around $1287.

First line support in any further drop would be $1260, and then on to the 50-day simple moving average (SMA) at $1250.

WTI looks upward
Yesterday’s WTI surge has accomplished what bulls were waiting for – an opening above the $46 resistance level. As a result, we would argue upside momentum is back with a vengeance. The next target is the November 2015 high at $48.27, and then on towards $51. 

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