Technical analysis: key levels for gold and crude

After leaping higher, gold looks at risk of some selling, while oil prices remain robust overall. 

Oil barrels
Source: Bloomberg


Having moved higher by leaps and bounds, the question is now whether gold is about to close above $1350, or whether the combination of overbought intraday charts and extremely bullish positioning will lead to a swift reversal.

The metal is in an uptrend, so the approach here would be to buy the dips as and when they appear. It is important to note that the steepness of the move since the beginning of June means that we could see a drop back to just below $1280 and still be in an uptrend. A close above $1350 targets the March 2015 highs around $1385.


Gains since 20 June have been stymied by the $51 level, so although we are still in an uptrend from the Brexit day lows, the metal needs to clear $51 to suggest that more gains are on the way.

The next target above here is $52.85, and then on to the October 2015 peak around $54.15 for Brent.


There has been a worrying development on the WTI chart, with a series of lower highs since early June. The price needs to close above $50 and quickly, lest further weakening momentum hands the initiative to the sellers.

A close above $50 targets $51.60, while further downward momentum below the 50-day simple moving average ($47.85) would head towards $46.35, which marked support in June and also resistance at the end of April and in early May. 

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 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.