Technical analysis: key levels for gold and crude

Gold is fighting hard to hold above $1220, while WTI looks set for further moves lower.

Oil barrels
Source: Bloomberg

Gold struggling and more downside possible

We continue to wait to see whether gold can break below key support at $1214, to create more downside.

Good short-term support was provided at $1217-$1221, but a bounce will need a break above $1229, where gains stalled earlier in the week. Longer-term, $1240 and then $1255 are the areas to watch on the upside.

WTI continues the breakdown

The breakdown goes on for WTI, although the price has yet to break the $44.67 low from Wednesday. If that happens, we look for a move back down towards $42.

A rally needs to clear $46 and then push above the 50-day simple moving average (SMA) at $47.02. 

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