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Technical analysis: key levels for gold and crude

Commodity prices are looking to bounce after a difficult week, although there is much work to be done to reverse the current bearish picture.

Gold figure
Source: Bloomberg

Gold - will it hold the $1225?

It has not been fun for gold bull over the past month – the 5.4% fall since mid-April mirrors, the February/March pullback. If the price can hold the $1225 low from last week then we could see a push back to $1240 and then the 200-day simple moving average (SMA) at $1249.

The latter would put the price back above the December rising trendline, and potentially suggest a move back to $1300. A drop back below $1225 would open the way to the 100-day SMA at $1222 and then down to the $1195 March low.

WTI may see more gains 

Friday’s price action reinforces the idea that a bounce is in the offing for WTI. A fall to $44 brought out the buyers, and, while the price is falling back from $47.12, the overnight high, more gains could be on the way.

The next levels to watch are $49.40 and then $51.40 on the upside. A failure to move on above $47 would suggest a move back to $45 and back down to $44. 

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