Technical analysis: key levels for gold and crude

Gold’s rally goes on, while oil is heading back towards the 2016 uptrend line.

Gold bullion
Source: Bloomberg

Gold rally continues, but for how long?

Gold’s rally has carried it through $1275, and now the next target is the $1299 level, the 50-day simple moving average (SMA).

However, it is still hard to escape the impression the price is headed lower over the longer-term, so unless it holds above $1315 the most likely end of this bounce will be a selling opportunity, with a target at $1250 and then $1200. 

WTI hits a monthly low

OPEC’s unravelling deal has seen oil hit its lowest level in a month. With the uptrend from the January/February lows intact, bulls are presented with an opportunity to buy oil with a very attractive risk-reward outlook.

A bounce from the 200-day SMA ($45.82) could set WTI up for a challenge of $50 and then $52, with a stop at the September lows of $43.30. 

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