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

Technical analysis: key levels for gold and crude

A hard day for gold yesterday has seen key support breached, while WTI looks to be stabilising around the $49 mark.

Gold
Source: Bloomberg

Gold pushes lower

Tentative signs of a recovery in gold were obliterated yesterday, with the price dropping through key support at $1264. The next area to watch will be that provided by the 200-day and 50-day simple moving average (SMA) at $1255 and $1249 respectively, where some support may develop, or failing that, down to the rising post-December trendline, which would suggest support around $1241.

Bulls need to see a recovery of $1264 and then a push above $1270 to reverse the sequence of lower highs and lower lows on the hourly chart.

gold price chart

WTI has begun to find support

After a steady drop over the past month, WTI has begun to find support around the $49 mark. So far we have not seen a fresh lower low, this would require a move below the $48.32 level from last week.

Buyers now need to get the price back above $49.86 to create further momentum. Momentum indicators on the daily chart are stretched to the downside, suggesting a higher possibility of a snap-back rally in the short term.

oil 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.