Technical analysis: key levels for gold and crude

Further losses for gold yesterday have followed on from the break of support earlier in the week. Meanwhile, oil has begun to move upwards once more.

Gold ekes out a small bounce

The price has managed to bounce from the lows, after further losses yesterday took gold to its lowest level since late July.

It has managed to bounce slightly but, given the strength of the move, it looks like rallies back in the direction of $1264 will continue to bring out the sellers. Below $1246, $1240 comes into play, and then the price risks a swift return to $1214. A close back above $1264 is needed to cancel out the more bearish outlook.

Gold price chart

WTI resumes its march higher

The bounce off the 200-period simple moving average (SMA) of $56.32 on the four-hour chart has created a new higher low for WTI, and thus points towards the continuation of the rally.

The next areas to watch include $57.00, then $58.07 and $59.00. A bearish view would require a move below $55.67. 

Oil price 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.