Technical analysis: key levels for gold and crude

Hopes of a gold bounce appear to have been dashed, while oil now needs to decide whether it wants to break key resistance.

Source: Bloomberg

Gold struggles to make gains

The price continues to hover above $1257, suggesting at least that the consolidation period goes on.

Dips down to $1250 and then $1240 could find some support, while a drop below here would head to the June lows at $1200. A bounce needs to clear $1270 and then $1280. 

WTI moves higher

Yesterday’s Vladimir Putin-inspired bounce took the price back to $52, where the rally stalled back in June. The next target to watch would be $54.13 and then a big move would take the price to $61.77, not seen since May of last year.

The price could drop to around $46 and still be in the uptrend off the February lows, with some support likely around $50, and then down to the 50-day simple moving average (SMA) at $46.83. 

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.