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Technical analysis: key levels for gold and crude

Gold is in full retreat this morning, while oil is moving modestly higher after heavy losses last week.

Oil pipework
Source: Bloomberg

Gold retreating

With risk assets rallying across the board, gold has been given a big shove lower. The pullback in gold’s current uptrend from the December lows looks to have further to run, with $1264, and then $1239 the big levels to watch in terms of potential support.

The 200-day simple moving average (SMA) at $1253, and then the 50-day SMA at $1245 could also provide some support in any bigger move lower. A rally needs to clear $1276, and then break above $1284 to put the price back above the long-term descending trendline off the highs of summer 2016.

WTI shows shy moves up

Last week’s sell-off took the WTI price back to the 200-day SMA at $49.42, and we have now seen a small bounce off this level.

The first level to watch is $50.52, followed by $51.34 and $52. Below the 200-day SMA we have the rising trendline, which would suggest support around $48.07. 

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