Technical analysis: key levels for gold and crude

Gold attempts to regain ground following recent losses, while crude prices finally catch a bounce amid renewed hope of an OPEC deal.

Source: Bloomberg

Gold tests notable resistance level

Gold has been testing the key $1230 resistance level in the past 24 hours, as a sign that we could be due a bounce of sorts following the recent downturn.

Should we see an hourly close above $1230, then it would point towards a potential move into the 61.8% ($1245) or 76.4% ($1252) Fibonacci levels. However, the downtrend would remain intact unless we see a break and hourly close above $1265.

As such, we could either remain below $1230 for the bearish trend to stay in play, or else break through $1230 to provide a likely move to the $1245-$1252 resistance zone upon which the bearish outlook would come back into play. Only with a move above $1265 would a bullish outlook return.


Brent breaks back above resistance

Brent Crude rallied overnight after comments from OPEC signaled a drive to resolve the differences that currently undermine the drive to cut production levels.

This has brought price back above both the crucial $45.35 resistance level and the $45.48 swing high. As such, we could be set for a period of short-term strength off the back of renewed hope of a deal. With price heading northbound, there is the potential for further gains, with $46.30 the next resistance level of note.

However, a break back below $45.48 would provide a more bearish outlook once more.


WTI extends overnight gains

WTI similarly broke through two keys resistance levels, at $43.22 and $44.19. The next resistance level of note is $45.16, which is clearly within reach.

Over the short-term, we could see a continuation of this rally and thus as long as we do not see a break below $44.54, a short-term bullish outlook is in play.

However, a break below $44.54 would provide a more bearish tone. 


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.