Technical analysis: key levels for gold and crude

Gold and oil had a tough week last week, but both may see rebounds in the short term.

Gold hopes for a rebound

We saw $1307 act as a barrier to upward progress last week, but the gold bulls have managed to hold the rising trendline from the December 2016 lows.

A continued defence of this level suggests another run at $1307 and the 200-day simple moving average (SMA) at $1308. A bearish view would develop with a close below $1283, the lows from last month.

WTI loses a key trendline

Oil bulls will note with a degree of worry the close below the rising trendline that has held since the end of last August for WTI, but it may not be the end of the rally just yet.

A move back above $66.60 would revive the bullish view, with a short-term target of $68.65. Further declines would target $64.18 and then $61.84.

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