Technical analysis: key levels for gold and crude

Gold prices have paused for breath in their rapid ascent, while oil has managed to find some positive momentum after several days of losses.

Oil pump jacks at work
Source: Bloomberg

Does a potential unwind await gold?
Having briefly touched $1200 yesterday, a modest gold pullback is underway. A continuation of this move takes the price down to $1170 and then $1148, the lows of 5 February.

Given the parabolic move in gold prices since the beginning of February, the possibility of an ugly unwind looms large, A pullback all the way to $1148 would still leave gold in a strong uptrend, and, crucially, above the monthly downtrend line that it broke last week. 

Brent bounces looks likely
Brent appears to be shaping up for a short-term bounce that will see the price test $34 in due course, At this point selling may take over, with downside targets around $32.42 and then $32.24. A move above $34.50 would signal another attempt to break $36 is in the offing.

WTI seems to have stablisied
WTI prices have stabilised around $30, with the possibility of a bounce towards the top end of the channel at $32.20 now in sight. A fresh move below $30 would find support around $29.25, with the January low of $27.57 in prospect if the selloff gathers pace. 

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