Technical analysis: key levels for gold and crude

Friday’s retreat in gold has been mostly unwound, but is the uptrend under threat? Meanwhile, oil has found the strength to build on the bounce from the end of last week.

Gold recovers from Friday sell-off

The gold price bounced impressively from the lows of Friday, but if the rally peters out below $1294 then it is possible we have a lower high and a potential indication of near-term weakness.

Further declines would target $1294 and then the $1276 low from Friday. The rising 200-hour simple moving average (SMA) at $1278 would also be an area of possible support.

Gold chart

Gold chart

WTI reclaims $49

Oil’s recovery continues as the WTI price tests the water above $49.00 once again. From here, the $52.00 area comes into play and then on to $54.75, with the 50-day SMA (currently $53.72) also a possible area of resistance.

Trendline support from the December low comes into play down towards $46.00, therefore, even a deep pullback may not spell the end of this move higher. A close back below $45.00 revives the bearish view.

WTI chart

WTI chart


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