Technical analysis: key levels for gold and crude

Rebounds for both gold and WTI crude look unlikely to last, with recent declines expected to come back into play.

Gold hits confluence of resistance

Gold has rebounded into the 61.8% Fibonacci resistance level, following a welcome period of respite from the recent decline.

This upside always looked unlikely to last, and with the price having ran into the 61.8% retracement and descending trendline, there is a good chance we will turn lower before long. We would need to see a break above $1217 to negate this wider bearish trend.

WTI rally seems unlikely to last

WTI has been regaining ground over recent trading days, yet with this gradual ascent, there is a strong chance we will see another leg lower before long.

Crucially we have been falling towards the $63.41 level, below which we would be looking at a possible longer-term breakdown. A bearish view remains in play unless we see a break above the $67.82 swing high.

This information has been prepared by IG, a trading name of IG Markets 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.

Find articles by writer