Technical analysis: key levels for gold, silver and crude

Gold and silver are rising for the second consecutive day, while oil prices are seeing some support yet again.

Silver bars
Source: Bloomberg

 Gold 100-DMA to cap gains?

The precious metal has found support in the region of the 50-daily moving average, giving it the strength to move away from $1300. However, the 100-DMA is now providing resistance on the upside, while the Tuesday close at $1308 could hinder short-term progress too.

Further gains to the upside could be capped by the 200-hour moving average, even if the intraday relative strength index is no longer flashing an overbought reading.

Silver sees modest gains

Modest gains for silver off yesterday’s lows around $20.60 have seen the commodity move upwards today as well, but on an intraday chart the 100- and 200-hour moving averages, together with the $21 level, could easily prevent the metal from making further progress. The move through the 20-DMA suggests there is the potential for more downside, heading towards the 200-DMA around $20.31, even if the lagging 50-DMA is still moving higher.

Silver is no longer overbought on a daily basis, and a gradually rising RSI provides some hope of further gains, but a close back above $21 is needed to suggest the weakness has run its course.

Brent crude becomes active

Brent's open back above $107 sends a signal that some buyers may finally be active here, but a move through $108 is needed to confirm the move. The daily RSI is now moving out of oversold territory, while stochastics are suggesting a turnaround is in progress as well. However, the 200-DMA around $108.90 is still going to make the move higher more difficult.

On the downside $106 should prove strong support, as witnessed by the price activity on Tuesday when a dive lower was met with strong buying.

NYMEX breaks downtrend

It seems that NYMEX has finally broken the downtrend from mid-June, with a move back through $102 supported by the RSI and stochastics, both of which are now no longer oversold. Now the 100-DMA needs to be breached, followed on by a move through $104, and we can then say that the 2014 uptrend is back in business.

If the move higher does falter then the downside should be limited by the all-important $100 level, which did excellent work on Tuesday at stemming the selling.

Denna information har sammanställts av IG, ett handelsnamn för IG Markets Limited. Utöver friskrivningen nedan innehåller materialet på denna sida inte ett fastställande av våra handelspriser, eller ett erbjudande om en transaktion i ett finansiellt instrument. IG accepterar inget ansvar för eventuella åtgärder som görs eller inte görs baserat på detta material eller för de följder detta kan få. Inga garantier ges för riktigheten eller fullständigheten av denna information. Någon person som agerar på informationen gör det således på egen risk. Materialet tar inte hänsyn till specifika placeringsmål, ekonomiska situationer och behov av någon specifik person som får ta del av detta. Det har inte upprättats i enlighet med rättsliga krav som ställs för att främja oberoende investeringsanalyser utan skall betraktas som marknadsföringsmaterial.