Technical analysis: key levels for gold and crude

Gold continues to falter below $1250, while oil has made new lows this week and seems set for a move lower. 

Oil pipes
Source: Bloomberg

Gold struggling

Gold continues to falter at the descending summer trendline, with a push above $1250 still not evident. A push back to $1220 and then $1205 could be in order, but as long as $1195 holds, the sequence of higher lows continues.

Above $1250 we would still look for a broader push to $1280 and the downtrend from the 2011 highs. On the weekly chart the 50-week simple moving average at $1259 is also providing some resistance.

Gold price chart

WTI hitting new lows  

We saw a new low on Wednesday, and crucially WTI fell below the post-February rising trendline yesterday. Rallies have been sold all week, so another bounce today could bring out the sellers.

The next big levels to watch will be $45.10 and then $43.08. Overall, it will take a move back above the recent high of $49.50 to indicate that the price is moving back higher. 

WTI price chart

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