Skip to content

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 been hit hard this morning, while oil’s steady downtrend is now at a crossroads. 

Mining
Source: Bloomberg

Gold looking unsure

The nascent gold rally has taken a nasty knock, dropping back rapidly from $1257 and the 50-day simple moving average (SMA), but finding buyers around $1235 and the 200-day SMA.

A close below $1240 would negate the positive outlook created last week, and open the way to $1214 and then $1195. If the buyers can hold $1240, we may see a resurgence, but for now the picture is quite uncertain.

WTI working hard to bounce

The recovery of $42.80 last week, following a dip beneath it, lends strength to the idea that a bounce is still in progress. However, the four-hour chart shows that the sequence of lower highs has not yet been broken. This would require a move above $44, and the 50-period SMA on this chart that has, until now, done sterling service as a trendline.

For now, it is probably too early to call an end to the slump, but a turn could be at hand. WTI will bear careful watching over the next few days. 

IGA, may distribute information/research produced by its respective foreign marketing partners 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 IG 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.

Find articles by writer