Technical analysis: key levels for gold and crude

Despite early losses for both gold and crude, it seems likely that the bulls will come in once more in the commodity market today.

Oil barrels
Source: Bloomberg

Gold back at crucial trendline support
Yesterday brought about a nice bounce in gold, as the ascending trendline held once more. We have seen yet another move down to the $1271, ascending trendline and 100-SMA support today. This provides a good bullish indicator for yet another rally in this market.

Of course, there is a chance we could see a break lower and thus an hourly close below $1268 would negate this bullish view. However, there seems a good chance we will rally from here and thus a bullish view is in play, with $1280, $1282 and $1289 the next key resistance levels.

Gold daily chart

WTI turns lower after late gains
Despite a sharp move lower in the morning, WTI managed to regain significant ground yesterday. We are seeing a similar move today, with a break below $48.88 leading to significant losses. However, while we could see short-term losses, a closed hourly candle below $48.13 would be needed to provide a bearish outlook given the strong uptrend.

As such, it seems sensible to buy into pullbacks, with the $48.42 - 48.48 zone an interesting area of support should it be reached.

WTI daily chart

Brent retraces after hitting $50
Despite the fall below $49.00 in the morning, Brent also managed to rally yesterday. The continued creation of higher highs persists and thus it is likely that retracements will be bought into.

Therefore a bullish short term view holds unless we see we see an hourly close below $48.83. The $50.00 mark remains the crucial resistance level of note.

Brent daily chart

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.