Technical analysis: key levels for gold and crude

It looks like oil will be under pressure despite a strong finish last week, while gold is doing its best to rally. 

Source: Bloomberg

Gold could see $1119

Once again gold has rallied off its lows, but having moved higher it may now become a target for fresh selling. A failure to move on above $1142 could see a turn lower, targeting the key level of $1127 before heading on to $1119.

If it does break $1142 then the price could target $1156. Any further rally really needs a shift in the US dollar strength that has dominated since the election and intensified following the Federal Reserve meeting last week.

Brent eyes early-December highs

The price rallied hard into the close on Friday, recovering lost ground, but so far it is unable to break above $56.17. A failure to hold here could lead to a test of $55.30, and then on to $53.52 and potentially lower for Brent.

Above $56.17 the price would target the early-December highs towards $57.80.

WTI could drop to $50.88

The price has turned lower after a rally into the end of Friday. An inability to get past $53.55 raises the prospect of more selling ahead, potentially heading down to $52.56 and the low of Thursday at $50.88.

Any rally has to clear $53.55 and then push on to the highs of last week at $55.13 for WTI.

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.