Technical analysis: key levels for gold and crude

Gold remains on course for further losses for the time being. Meanwhile, oil has eased off from its recent breakout, allowing fresh buying to begin.

Source: Bloomberg

Gold pushes lower

The drop continues here for gold, with the price now probing the 100-day simple moving average (SMA) at $1272.70. For now, however, any turn higher would still be a buying opportunity in the trend off the December 2016 lows. Anything that holds above $1214.00 is a higher low, with a close beneath this level needed to reverse the, still bullish, longer-term view.

However, as long as the price remains below $1290, rallies will continue to be sold. Gold bulls may have to endure more pain for the time being.

WTI eases back but remains bullish

The pullback from the recent high goes on for WTI, but as long as the price remains above the February downtrend line, we should anticipate further gains in the longer term.

Upside targets include last week’s high at $52.93, and then on to $54.00 and $55.00. Back below the downtrend line would signal a move below the $50.50 level, and then back towards the mid $40s. 

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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