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CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Technical analysis: key levels for gold and crude

Gold’s ascent continues, while WTI looks set for more downside, after dropping back below key resistance.

Oil pump
Source: Bloomberg

Gold above 100-week moving average

By this point in 2016, gold had risen by over 10%. This year is not quite as bullish, but the price is still 7% higher, and is back above the 100-week moving average ($1202).

Friday’s dip was furiously bought, pushing the price to highs not seen since early November 2016; it may now be due another pullback, but so long as $1210 holds, it will simply be a dip in the trend. Above $1234 the price will head towards $1248 and then the 200-day simple moving average at $1263. 

WTI bulls still awaiting breakout

With the price back below $54, it looks like oil bulls will have a little longer to wait for a breakout. Now, with momentum indicators turning lower once again it looks like the bears are still in control. The first area to watch is $52.80, and then down to $52 itself. 

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