Technical analysis: key levels for gold and crude

Gold’s rally goes on, with further gains made, while oil may have exhausted its bullish momentum. 

Oil pump
Source: Bloomberg

Gold on the rise

It’s been a great few days for gold longs, with the push to the $1245 area confirming the bullish momentum. A steady rising trend on the hourly chart should provide the guide here, dips towards $1240 today, or along the trendline in coming sessions, or to the 50-hour SMA (currently $1235) should be viewed as buying opportunities.

The confluence of the 50- and 200-day simple moving averages (SMAs) could lead to some hesitancy around $1245, but a firm push above $1248 should clear the way nicely for a test of $1260 and higher.

WTI trying hard to break the $50 mark

The WTI price has spent two days trying to break through the zone around $49.40-$50, with horizontal resistance plus the 50- and 200-day SMAs holding back progress. Having recovered the post-March rising trendline, we may see a push higher today, with dip buyers entering so far this morning.

A close above $50 could spark a swift move to the 100-day SMA at $51.55. A failure to push on higher today and a drop back below $48 would likely spell the end of the bounce from last week’s lows. 

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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