CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Technical analysis: key levels for gold and crude

Gold has questions over whether it can continue its recent uptrend, given the rally towards a key resistance level. While WTI continues to trend upwards in a convincing manner.

IG Analyst

Publication date : 2017-04-06T10:03:58+0100

Gold bars

Source: Bloomberg

Gold approaching crucial resistance level

Gold managed to rally back from the brink, after attempting to break to a new swing low, below the $1244 level. Despite the fact that the price managed to bounce back from that level, it is without a doubt a potential warning sign that we could head in that direction. Ahead we have a crucial resistance zone, between $1261 and $1264, which will dictate the state of play going forward.

The ability to break and post an hourly lose above $1264 would mean that we are likely to begin trending higher once more in a convincing manner. However, given yesterday’s move back into $1244, there is also a good chance we could see the market turn lower once more from this zone. It is a wait and see situation.

Gold price chart

Gold price chart

Gold price chart

WTI continues to trend higher

WTI has been gaining ground in a very consistent manner lately, following a double bottom at the 61.8% retracement. Yesterday’s pullback would have been seen as a countertrend retracement, which is expected to lead to another leg higher. We seem to be seeing it come into play now, given the rally in recent hours.

Yesterday’s high of $51.05 is being utilized as new support, yet bear in mind that any further downside would be looking for Fibonacci support to come into play. As long as we do not see a break back below $50.13, a bullish outlook remains in place.

WTI price chart

WTI price chart

WTI price chart

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