Technical analysis: key levels for gold and crude

It looks like both gold and oil are headed lower, with bullish momentum fading in both commodities.

gold bars
Source: Bloomberg

Gold dropping down

It seems that we will continue to see gold weaken, with the pullback in a broader uptrend still playing out. Trendline resistance has held back gains over the past two sessions, and a drop through $1275 would likely open the way to $1264, the previous high in this rally.

Bulls will need to wait until we see the price move back to $1253 and the 200-day simple moving average (SMA), or even down to the rising trendline around $1245. 

WTI down again

The brief recovery four WTI yesterday has given way to more losses, and now we look to see if the sellers can breach $50.52.

A close below this opens the way to the 200-day SMA at $49.40, and then down to the rising trendline around $48.10. Any rally needs to clear $51.34, the high from Thursday’s session.

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.