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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Technical analysis: key levels for gold and crude

Gold’s bounce to $1300 has fizzled once more, but oil could be on the up yet further. 

Oil rig figure
Source: Bloomberg

Gold – will rallies continue to be sold?

Friday’s gold price action saw the commodity attempt to vault the key $1295-$1300 area, but it was defeated as it has been twice before.

This would seem to suggest that rallies will continue to be sold, with a first target of $1264. As major resistance, $1295, remains to any upside progress.

WTI bullish outlook for now

The WTI bounce off the 50-day simple moving average (SMA) last week was followed up by an impressive rally that seems to have reversed the outlook here.

Now we look to see if, after a pullback to work off its intraday oversold condition, the price can push back to $49.40 and then the 200-day SMA at $49.88. It will take some doing to reverse the bounce from Friday, and it is likely that only a shift back below $46.65 would reverse the bullish outlook. 

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