Technical analysis: key levels for gold and crude

Gold has failed to push on, but oil prices are still in fine form.

Oil pipe work
Source: Bloomberg

Gold slumps
A new lower high was made yesterday, so for the time being it looks like we may see more gold weakness, perhaps down towards $1240 or on towards $1235 and the rising trendline. A bounce will need to push on to $1265 and then $1280. 

Gold chart

Yesterday’s WTI move puts the price above the key $40 level, which was support in mid-November last year. The 200-day simple moving average (SMA) comes into view now at $42.45, coinciding with the lows of October around $42.60. Dips back towards the 200-hour SMA ($38.37), or even a repeat of Tuesday’s sell-off, should be viewed as ideal buying opportunities. 

WTI 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.