Technical analysis: key levels for gold, silver and crude

Gold has received support today after concerns regarding Ukraine increased slightly, but oil remains under pressure.

Oil rig
Source: Bloomberg

Gold breaks $1312

Gold has finally broken above $1312, giving hope that further gains on the upside may be possible.

After days of indecision the price is moving upwards, reinforced by a rising relative strength index that has broken through the 50 mid-point, with the MACD heading higher as well.

The target is now the $1320 region, which will need to be broken if gold is to challenge the mid-July highs. Support should continue to be found around $1307, with the rising 50-daily moving average also potential support.

Silver sees $20 resistance

The 100-DMA $20 and the descending July trendline are all conspiring to hold silver back this morning. However, we do have an increase in the daily RSI, which gives some hope of positive momentum. Even so, without a close above $20 silver seems to be condemned to remain in its current trading range of $19.80 - $20.

The intraday RSI continues to rise, but as has been noted before the 200-hour MA continues to act as a significant barrier to any real upside.

Brent turnaround slows down

Another attempt at moving above $105 has been halted so far today for Brent, while the positive divergence on the RSI noted yesterday seems to be more of a slow burn than a sign of a real turnaround.

The hourly chart shows a declining RSI, while short-term attempts to clear the 200-hour MA have been beaten once again. Attention now shifts to yesterday’s lows, just below $103.50.

WTI remains above current trendline

Here we are seeing WTI remaining above its current trendline, providing significant support, while the daily RSI continues to press higher. The next target on the upside is $97.80, and beyond that the $98.50 area.

On the hourly chart we are looking for the price to clear $97.50 and then the 200-hour MA. A rising RSI provides greater reason to see additional upside.

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.