Technical analysis: key levels for gold and crude

Gold is looking to push to fresh highs, while oil prices appear to be on the verge of heading lower once more. 

Source: Bloomberg

Gold puts bulls in control
The rally continues here, with dips down to $1290 yesterday being enough to bring out more buyers, Now the work to push on above $1305 and then 2015 high begins.

A close above here signals that we are headed towards $1340, the July 2014 peak and then we can contemplate a move to the high of that year near $1390. Gold bears would need to push the price back down towards $1270 for the current bullish picture to be reversed.

Brent heads lower
Oil prices are in retreat once more, with all eyes on $45.60 and a possible move below this support level. If this is broken then the $44.90 area comes into view next, followed by the 200-day simple moving average at $42.72.

For the time being, it looks like rallies will continue to be sold, particularly if the price is unable to close above $47. 

WTI still looks negative
The pullback from the high of last week remains in place, and if the price drops below Monday’s low around $44.50 then we could see a further move down towards $42.60 in the short-term.

Daily stochastics remain negative, so we would look to sell any intraday rallies that manage to push into overbought territory. It would need a close above $46 to reverse the current bearish outlook. 

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.