Skip to content

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 is under further pressure after breaking key support, while there is little sign of tiredness in oil’s rally. 

Oil pump
Source: Bloomberg

Pressure on gold rises

The break below $1240 looks to have handed the initiative back to gold’s bears. Last week’s low at $1236 has also now been broken, and a close below here, and ideally below the 200-day simple moving average (SMA) at $1236, would open the way to $1223 and then $1214.

Bulls would need to recover the $1240 level and then push on above $1245 in the short-term, in order to suggest a move higher is underway. 

WTI pushed up by dropping rig count

Friday’s WTI rally moved into high gear after the weekly rig count data showed the first drop since early January. We have seen only small retracements here since the price changed direction down at $42. A bigger pullback could prompt some volatility, but also a change to add to longs or initiate new positions.

As long as the price holds $45, further gains seem likely, with further upside targets lying at $47.28 (the 50-day SMA), and then on to $49. 

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 IG 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.

Find articles by writer