Established in 1974
185,800 clients worldwide
Over 15,000 markets

Technical analysis: key levels for gold and crude

Gold continues to move lower after last week’s high, while oil enjoys another temporary bounce.

Gold bars
Source: Bloomberg

Gold starts to drawback
Gold rallies back towards $1090 should find sellers coming back in to keep pushing the price lower, as the pullback from the $1110 of last week continues.

Targets on the downside are to be found around $1074 and then $1064. The price would need to close above $1096 to suggest that the pullback has run its course.

Gold

Brent bounce catches bears by surprise
The strong bouncein Brent crude thus far this morning will have come as a surprise to some bears, but until it clears $32.70 it is arguably still a rally to be sold.

If the price moves above $33.50 then we might see a more sustained move to $35, but even here the dominant trend should not be trifled with. New targets on the downside lie around 429.1 and then $27.80. 

Brent crude

WTI rally in the offing
The US light crude price needs to clear $31.94 to suggest a rally is in play, in which we look towards $33.20 and then $34.20. Selling will doubtless resume in due course, at which point the area around $29.68 and then $27.41 comes into view. 

WTI

The information 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 Bank S.A. 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 and as such is considered to be a marketing communication.