Technical analysis: key levels for gold and crude

Oil is doing its best to recover, while gold faces a choice between two trendlines.

Gold stuck between trendlines

The price for gold continues to bounce off the post-December 2016 rising trendline, providing some hope. But the bulls now need to see the price move back above the rising short-term trendline from the May low, which it broke below last week.

This would need a push above $1303, and then the $1307 area will come into play. A drop below $1290 would break the longer-term rising trendline and see support around $1284 tested.

WTI bulls need to step up

We are rapidly approaching crunch time for the rising trend for WTI. If it can get back above $66.45 and retake the post-September rising trend, then bullish momentum may accelerate.

However, a failure to recover the trendline would likely bring out new sellers. Still, the bounce off $64.18 yesterday is still a higher low from the May low near $62.00, meaning that bears need to approach this one with caution. If it can recover $66.60 then a push back towards the recent highs near $73.00 may well start to develop.

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