Technical analysis: key levels for gold and crude

Gold continues to rally, while oil prices remain relatively quiet ahead of inventory data later today.

Oil pump
Source: Bloomberg

Gold continues to rise
Gold’s rally over the month has gone rather parabolic over the past couple of days, but the rising hourly trendline still holds. The daily chart shows the $1120 area has stifled progress, but a move back above here targets $1133, the 200-day simple moving average and then the monthly descending trendline at $1135. Dips back towards $1110 should be seen as possible buying opportunities. 

Brent looks up
Moves above $32 have proved short-lived for Brent, with this level and then $32.80 acting as resistance. A break above $32.80 would target $34.50 and then $36, the key December support level. Downside targets lie around $29.34 and then $27.57. 

WTI may bounce
If the price pushes below $29.13 then we may find ourselves at the start of a new leg lower, which would suggest a move back down to $28 and then $27.60. Should this area hold, then a move back towards $32.30 is still possible, which would pave the way for a test of upside targets around $33.92 and then $35.44. 

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.