Technical analysis: key levels for gold and crude

Gold has reached a key resistance level, while oil has bounced from the 50-day moving average.

Gold bars
Source: Bloomberg

Gold strong again

Gold has returned to the $1295 resistance level that has been tested twice since April. A daily close above here would trigger a test of $1307, and then on to $1345 and $1360.

It would need a drop below $1267 to suggest that more short-term weakness is on the way, which could open the way to $1252 and the 50-day SMA. 

WTI finds support

WTI has found support at the 50-day simple moving average (SMA) at $46.63, turning higher for a second day and attempting to clear the $47.40 area. Above here the 100-day SMA at $48.11 would come into play, and from here the 200-day SMA at $49.85.

A turn lower would need to close below the 50-day SMA at $46.63 to suggest a bigger leg lower is at hand. 

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