Technical analysis: key levels for gold and crude

Gold begins to climb again after a heavy fall, while WTI continues on its downtrend from the high of last month.

Gold nudges higher after steep drop

After heavy losses last week, gold has managed to find support at $1246.

Having seen such a swift move lower, the sellers may pause for breath, but any rally that moves back in the direction of $1264, but fails to post a close above this level, is still a selling opportunity. The next likely areas of support come in at $1239, $1214, and then $1195.

WTI continues to drift down

WTI continues to respect a downtrend from the 30 November high ($58.90), with a move above $57.44 needed to negate the bearish short-term outlook.

Some support is possible around $55.67, and then $55.00. A reversal and close above $57.44 would suggest buyers are back, and that the $59.00 area will be tested once more.

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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