Technical analysis: key levels for gold and crude

Both gold and oil have moved sideways so far this week, as the dollar strengthens, but their uptrends remain intact. 

Gold
Source: Bloomberg

Gold rally hindered by dollar

Dollar strength continues to inhibit gold’s rally, but it remains above $1314, with $1307 also acting as further support.

A move back below $1295 is needed to put a bearish spin on things. 

Gold chart

Brent stays on uptrend pattern

The uptrend for Brent continues here, and we look for weakness as a chance to add to positions.

A pullback towards the 100-period simple moving average (SMA) on the four-hour chart ($65.43) or an oversold reading on stochastics, would provide this. The near-term target remains at $69.23.

Brent 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.