Technical analysis: key levels for gold and crude

Gold has approached a crucial support level, where a break lower would signify the beginning of another period of weakness. Meanwhile, WTI is attempting to regain ground following the respect of the 61.8% retracement level.

Gold consolidates above key breakdown level

Gold has been consolidating at the start of the week, following a fall towards $1190 from the four-hour simple moving average (SMA) resistance.

The ability to break below that $1190 level is key to understanding whether we are going to see a wider bearish picture come back into play. Given the lower high posted last week, a break below $1190 would point towards another sharp move lower from here.

WTI rebounds from Fibonacci support

WTI managed to rebound from the 61.8% retracement on Friday, with the market continuing to push higher this morning.

The key here is whether we can see a break through the $68.39 mark in order to signify the end of this pullback. As such, we could see further gains, yet it makes sense to wait for a break through that resistance level as a key to further gains.

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