Technical analysis: key levels for gold and crude

Gold has clawed back some losses, but overall the bearish picture remains. Meanwhile, oil continues to track lower. 

Gold hits bottom end of recent range

Gold held the 200-day simple moving average (SMA), but has yet to really show that it has broken higher.

For that, a move above $1325 is needed. Below the 200-day SMA at $1305, the $1295 level comes into view. The current trading range that has held since mid-January may now make itself felt, prompting a surge of bullish momentum around $1308.

WTI stuck in downward channel

A small downward channel has formed over the last few days on the WTI four hourly chart, and the price bounced off the bottom end of the channel yesterday.

Further gains will target the top end around $68.50, forming a lower high. Major support in the short term is to be found around $66.58. 

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.

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