Technical analysis: key levels for gold and crude

Oil is spiking again while gold looks at risk of a turn lower.

Mining truck
Source: Bloomberg

Gold nearing the top?

A reversal yesterday from $1245 may mark at least a short-term top, although oversold intraday conditions and the 200-hour simple moving average at $1221 are providing sufficient fuel for a rally.

We will have to see how the bounce is treated – if it moves towards $1235 and then runs out of steam we have a good selling opportunity, which could target $1211 and then $1197. 

Brent sees effects of production cuts 

The IEA thinks OPEC is getting somewhere with its production cuts, and this has been enough to send Brent racing above $56.

However, it remains in the two-month trading range, so unless it closes firmly above $57.50 the range is intact. Above $57.50 the price would head to $58.90. 

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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