Technical analysis: key levels for gold and crude

Falling gold prices are an indication of growing risk appetite, but a retreat for oil is perhaps the fly in the ointment at present. 

Oil rig at sea
Source: Bloomberg

Gold

A drop back below the highs of last week for gold suggests a weaker close today might hand the advantage back to the bears. If this continues then we could see a return to support around $1305, the previous major resistance level.

The next resistance to any push higher lies around $1390 and then $1435. 

Brent

Further weakness in Brent prices sits at odds with strength in equities, with an open below support at $46.50 suggesting more downside is on the way.

The next areas to watch will be $45 and then the 10 May low at $43.34. A bounce would need to clear resistance at $46.50 and then move on above $46.20. 

WTI

WTI continues to push lower as well, and as a result we may see a further drop to $42.60, last seen in early May. It would need a close above $46 to reverse the negative outlook, and a further drop below the May low would suggest a bigger sell-off.

However, with daily stochastics oversold a bounce may be in the offing, particularly if the dollar continues to weaken. 

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.