Technical analysis: key levels for gold and crude

Crude continues to fall, as it approaches critical support levels which would change the medium-term outlook. Meanwhile, gold hits a convergence of support as it looks to rally once more.

Source: Bloomberg

Gold attempts to break through key support area

The commodity has been trading in a largely sideways manner over the past 48 hours, with yesterday’s temporary break through $1277.7 failing to hold.

This morning we are seeing another attempt to break through an important support level, with the 50-hour simple moving average (SMA), trendline and horizontal support at $1282.

This is an area where we could get some form of response and with that in mind, a bullish bounce is a strong possibility here. Ultimately, we would need to see an hourly close below $1276 to negate the current bullish view.

Gold daily chart

Brent bounce runs into Fibonacci resistance

The price has broken through the 76.4% retracement overnight, following a surprise rise in the IEA crude stock number yesterday. This brings us closer to the crucial $48.67 support level, which defines whether we remain within an uptrend on the medium-term for Brent.

It is clear that on the short-term, we have not negated the downtrend and thus further losses could be likely. However, given the medium-term bullish outlook, it makes sense that we watch out for short-term bullish reversal patterns as a possible signal that we are going to revert back to the uptrend. 

Brent daily chart

US crude pulls away from the brink

A very similar situation for WTI, which is attempting to claw back ground after a sharp move down towards the critical $47.94 support level. The hourly chart shows the clear downtrend of late, which has taken us back towards the swing low of $47.94.

This level would need to be broken for the medium-term uptrend to be negated. As such, watch out for a potential sign of reversal, which would come in the form of an hourly close above $49.04.

WTI daily chart

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.