Technical analysis: key levels for gold and crude

Gold’s revival means we could see a new rally back towards $1300, while WTI is back at the bottom end of its recent range.

Gold bars
Source: Bloomberg

Gold eyes $1350

The recovery yesterday puts the bulls back in charge, with the price now looking for a move to $1304 and the 50-day simple moving average (SMA).

However, given the roll over in the price on a longer-term view, this is likely to be a counter-trend rally that ends up providing a fresh selling opportunity in gold.

We would need to see a move above $1320 to indicate that another retest of the year’s highs at $1350 is possible. 

WTI could drop to 50-day SMA

A swift breakdown yesterday has carried the price back to key support at $49.50. A drop through here could see the 50-day SMA at $47.60 tested first, with additional weakness taking the price back to the rising 2016 trendline.

A rally from here would need to clear resistance at $52, and then carry on to $54.13 for WTI.

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