Technical analysis: key levels for gold and crude

Oil prices are rallying once again, but even gold appears to have discovered a new trend higher.

Oil barrels
Source: Bloomberg

Higher movements for gold
Gold bounced-off $1210 earlier in the week, and then pulled back to around $1220, before moving higher again yesterday. Having dropped back from the high overnight at $1240, the price may now find support around $1230, before moving on towards $1241 again, with further upside targets at $1260 and then $1277.

The 50-day simple moving average (SMA) ($1222) continues to provide support, so it will take a dip through here and then below $1206 to suggest further downside momentum.

Brent expects further upside
A swift pullback yesterday for Brent was then wiped out by yet another bounce, and with daily stochastics positive for the first time since the beginning of March, it look as if we can expect further upside here.

The next target is $42.30, and then on to the 200-day SMA at $43.83. A dip back to $39.50 should be seen as a buying opportunity, and it would take a drop through $37.50 to cancel out the broadly bullish hypothesis.

WTI sees a new uptrend
Buyers came back in late yesterday, and the price has now moved above yesterday’s highs around $38.20, which suggests that we are seeing a new uptrend. In this case, we look to $39 and then $41 as the next targets. 

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.