Technical analysis: key levels for gold and crude

Gold continues to falter below $1250, while oil has made new lows this week and seems set for a move lower. 

Oil pipes
Source: Bloomberg

Gold struggling

Gold continues to falter at the descending summer trendline, with a push above $1250 still not evident. A push back to $1220 and then $1205 could be in order, but as long as $1195 holds, the sequence of higher lows continues.

Above $1250 we would still look for a broader push to $1280 and the downtrend from the 2011 highs. On the weekly chart the 50-week simple moving average at $1259 is also providing some resistance.

WTI hitting new lows  

We saw a new low on Wednesday, and crucially WTI fell below the post-February rising trendline yesterday. Rallies have been sold all week, so another bounce today could bring out the sellers.

The next big levels to watch will be $45.10 and then $43.08. Overall, it will take a move back above the recent high of $49.50 to indicate that the price is moving back higher. 

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