Technical analysis: key levels for gold and crude

Gold is trading within a range, yet we are seeing the volatility come in crude, with WTI breaking lower from a 76.4% to hit our target and trigger a wider 76.4% retracement.

Gold rangebound after recent declines

Gold has been largely trading within a $10 range over the past week, with the price respecting the $1206 and $1216 levels.

We are moving away from the upper echelons of that range, pointing towards a likely move lower in the coming hours. However, look for an hourly close above or below these levels to highlight where the next move comes.

WTI completes 76.4% breakdown

WTI broken below the $66.42 support level, following on from a sharp drop late into yesterday’s session. This takes us into the wider 76.4% retracement ($65.93), which brings the longer-term uptrend into play.

With that in mind, there is a strong chance that we will see WTI start to strengthen from here. A break below the 76.4% would serve to heighten the chances that the wider bullish trend is going to be broken. However, for now it makes sense to look for short-term upside. 

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