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Technical analysis: key levels for gold and crude

Strong trends remain in evidence in both gold and WTI, as market dynamics still favour precious metals and crude continues its fall.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-06-06T10:12:23+0100

Oil pipes figure

Source: Bloomberg

Gold continues to push higher

After stumbling at trendline resistance yesterday, gold is in the ascendant once more. The hourly chart provides one of those trends that demonstrates the strength of trend-following and adding to winning positions.

The next stop looks to be $1295, the highs from April, and then on to $1307. A drop below $1260 is needed to end the sequence of higher lows and higher highs.

Gold chart

Gold chart

Gold chart

WTI - breaking lower to $44 or pushing back to $48.50?

A WTI key support area from mid-March was $47.12, and it is holding once again, preventing three attempts since Friday to break lower. If it does break then the drop to $44 could be swift.

Rallies have been firmly sold since 29 May, so any push back towards $48.50 should provide a fresh opportunity.

WTI chart

WTI chart

WTI chart

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