Over 40 years’ heritage
185,800 clients worldwide
Over 15,000 markets

Technical analysis: key levels for gold and crude

Gold is drifting lower following a rally into trendline resistance, while crude is attempting to make up ground following yesterday’s crash lower.

Oil pump
Source: Bloomberg

Gold dropping from trendline resistance

Gold has been gradually moving lower following a rally into a long-term trendline resistance. This morning has seen the overnight consolidation continue apace, providing us with little clues of the next move.

It looks sensible to short into any move higher, as long as we do not break through $1292. This is a play on the notion that we will continue to pull away from this major trendline, with a significant amount of room to the downside to fall into without breaking the wider uptrend.

Gold price chart

WTI attempts to claw back losses

WTI managed to break lower in a heavy manner yesterday, following a nice rally back above the 50-hour simple moving average (SMA) and into trendline resistance. This current rebound looks destined to falter given the shallow nature of the gains.

A break back below $50.90 would provide us with a renewed bearish signal. Until then, we are in rebound territory. However, it is worth noting that any such move higher would be deemed short term in nature within a wider downtrend.

WTi price chart

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 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.