WTI price and gold price rise towards trendline resistance
Gold and WTI at key crossroads, with recent gains bringing trendline resistance into play.
Gold consolidates around resistance zone
Gold has been in consolidating around the 76.4% Fibonacci resistance level, with the pickup in volatility seen this morning highlighting that we are at a crucial point for this market. The wider trend does point towards a likely bullish breakout before long, with a rise through trendline and $1713 bringing a bullish signal from here.
Until that happens, there is a chance we could roll over for the short term in a move that continuous the gradual decline of the past week. Nevertheless, any such weakness would simply provide a buying opportunity, with a wider bullish view in play until we break below $1660.
WTI surges into trendline resistance
WTI has seen another leg higher overnight, with the market hitting a two-week high. However, this rally has taken us into a descending trendline which is only confirmed with a third touch today.
Thus, it is worthwhile watching to see if we see any notable response from this level. With the wider downtrend still remaining in play until we see $31.57, there is a good chance we turn lower before long. Huge questions remain with respect to overproduction and storage, with fear of another squeeze when the June contract comes to an end next week. Therefore, while we are yet to see a bearish reversal signal, the current rally is likely to be on borrowed time.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. 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.
Speculate on commodities
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
Live prices on most popular markets
- Forex
- Shares
- Indices
