Technical analysis: key levels for gold and crude

Gold has fallen into a tight range, but oil’s rally shows no sign of stopping.

Source: Bloomberg

Gold could see $1240

The commodity continues to bumble along above $1250, as the post-slump consolidation goes on. However, so long as the price holds below the 200-day simple moving average (SMA) ($1262), the sensible approach would be to sell rallies.

A move through $1270 might suggest a new uptrend is in play, but for the moment the bears have the upper hand, with a first target down at $1240.

WTI eyes $62.60

Despite weakness yesterday the rally goes on, so a first target is the $52 level, followed by $54.13 and then the May-June 2015 highs at $62.60.

It would take a move below Friday’s lows of $49.50 to indicate that the rally has run its course for WTI.

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