Technical analysis: key levels for gold and crude

Gold has failed to capitalise on Friday’s upward move, while oil is off the lows in the wake of Iran’s return to crude exporting.

Gold
Source: Bloomberg

Gold eyes $1110

The bounce late last week gave hope to bulls, but the price was unable to push on through $1095.

If it remains below this level then it seems we may be seeing another selling opportunity, with a target around $1081, and then on down to $1070.

A break below the Thursday low heads to $1060. Any rally through $1098 would head towards $1110, the highs of January.

Gold

Brent could head towards 50-hour SMA

After a steep open lower, Brent has pushed off the lows, holding a line around $28.

If the price closes the opening overnight gap, then a bounce back towards the 50-hour simple moving average ($30.43) cannot be ruled out.

This would, however, be the signal for more selling, with those expecting further declines perhaps best served by waiting for the hourly relative strength index and/or stochastics to move back towards overbought levels, rather than the current oversold conditions that prevail. 

Brent

WTI could test $27.50

A similar picture prevails here in WTI, but so long as the price holds below $30.62 then the likelihood is a move back to $29.49, and then tests of support around $27.50.

The bearish picture prevails unless the price clears the 200-hour SMA around $32.14. 

WTI

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.