Technical analysis: key levels for gold and crude

Gold may well be building a base ahead of a move higher, while OPEC’s failure to agree a production freeze has left crude prices unfazed. 

Oil rig
Source: Bloomberg

Gold could move up to $1250

Gold has managed to steady its decline, hovering above $1200 in recent sessions. A close below here, and then below the next support at $1190, would open the trapdoor to fresh losses.   

However, if the price holds around its current level then we could see the beginning of an upward move, perhaps to $1250 in the first instance.

Brent could find support at $46.50

Despite no agreement to cut production, the price continues to hold around $50. However, until we see a daily close above $50.90 bullish momentum will still be absent.

A push lower would head towards support at $46.50.

WTI bulls eye close above $50

The price recovered off the lows yesterday, and remains within the $2 range seen since mid-May.

Bulls still need a close above $50 for WTI, while bearish momentum looks hard to come by unless the price moves below $46. 

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