Technical analysis: key levels for gold and crude

Gold could be showing signs of bottoming out, while oil is fighting hard to hold $49.

Oil barrels
Source: Bloomberg

Gold gathering support

It is still too early to say whether gold has bottomed here, but we have seen some support develop around the $1260 zone.

For now the downward trend remains intact on the hourly chart, and a push below $1260 would create new lower low. If the price can regain $1270, we may see the beginning of new bullish momentum, although it would be better to see a push back above $1276 to provide confirmation. 

WTI forming a base

Since 21 April the WTI price has found firm support around $49, which could suggest that a base is forming here.

Momentum is now heavily oversold, but we have yet to see a move back above $50 that would be a necessary prerequisite for a longer-term bounce in oil. More support could be found at $48, at the rising trendline. 

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.