CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Technical analysis: key levels for gold and crude

Dollar strength has hit gold hard, with a potentially bearish move underway. WTI, meanwhile, is still unable to break above a key trendline.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-09-21T10:16:22+0100

Oil pipelines

Source: Bloomberg

Gold suffering negative outlook

Gold bulls have had a tough period recently, seeing the price drop below the post-June rising trendline. With the price now back below $1300, and a sequence of lower highs and lower lows having been created, the next area of possible support would be $1264.

It looks like rallies will be sold, so it needs a move back above $1315 to reverse the negative viewpoint.

Gold chart

Gold chart

Gold chart

WTI still pushing February trendline

The WTI daily chart remains the one to watch here, as the price continues to bump its head up against the February descending trendline. A move below $50 would likely signal that a fresh downward leg is underway, with $48.39, the 50-day simple moving average (SMA), and then $47.41 area coming into play as downside targets.

A move above $51 would break the downtrend line, and signal another potential push to the May high at $52.

WTI chart

WTI chart

WTI 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 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.

Find an article

Find articles by writer

CFDS are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

This website is owned and operated by IG Bank S.A. Registered address at 42 Rue du Rhone, 1204 Geneva, authorised and regulated by FINMA.

The information on this site is not directed at residents of the United States and Belgium, or any particular country outside Switzerland and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.