Skip to content

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 surge continues, while oil is looking to build on the bounce from last week. 

Oil
Source: Bloomberg

Gold highest since US election

While indices turned lower, gold moved higher overnight, pushing to its highest level since the US election. Price action on Thursday saw dip buyers enter, so when combined with today’s developments further gains should be expected.

A pullback towards the 50-period simple moving average (SMA) at $1305 on the four-hour chart should be the kind of opportunity buyers will be looking for. Only a move below $1300 really negates the trend. 

WTI getting bullish

Having steadily dropped over the past month, WTI has moved back above the 50-day SMA ($47.34), but it needs a daily close above $48 to move above the previous lower high. A close above that level will then target the $49.40 area and then the 200-day SMA at $49.91.

A close back below $47 could potentially negate the bullish outlook. 

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.  Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. 

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Find articles by writer