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Technical analysis: key levels for gold and crude

Gold is off its lows, although this may not offer much comfort to the bulls, while oil continues to see strength.

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Gold bullion
Source: Bloomberg

Gold holds above $1122, but bulls remain wary

The price has held above the low of last week at $1122, but bulls need to be careful here. Rallies have been firmly sold throughout November and December, so there seems little reason to think the current price action will be any different, unless it moves firmly above $1150. 

Brent rebounds from earlier weakness

The price has recovered from weakness earlier in the week, with initial resistance around $56.50 now likely to be tested. Beyond this, the price may target the December high at $57.62.

A failure to move above $56.50 might suggest a test of support at $54.73 and then $54.26. It will take a move through $53, the low of early December, to indicate a potential test of $50 and then $47.

WTI buyers extended crude rally

Once again buyers have come back in to rescue the crude rally. We now look to see if the price can move above $54.13 to then challenge the $54.88 area. A firm drop through $52.50 would suggest a drop to $51.55 and then $50. 

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