Technical analysis: key levels for gold and crude

Gold bulls have managed a rebound in the price, but now have to work hard to reinvigorate the rally.

Gold bars
Source: Bloomberg

Gold gains lacking but intact

The uptrend off the December lows is intact, although gains above $1240 have been lacking over the past two weeks. The next resistance areas to watch are $1246 and then $1261, with the latter being the 200-day simple moving average (SMA).

The rally over the final two days of last week carried the price back to $1245, but could not break higher. We have seen the price retreat to $1232 and the 200-hour SMA, so if this holds a new bounce may be in the offing.

Bears will want to see the price move below $1230 but it will need a definitive close blow $1220 or even $1215 to really sound the death knell of this uptrend. 

WTI remains range bound

Price action last week saw the commodity hold in the middle of the $52-$54 range, so with this potentially bullish sign we wait to see if the $54 - $54.40 area can be firmly broken. Above this lies $54.90 and then $55.50. An inability to push higher would signal the price is to remain in the range for another day at least.

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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