Technical analysis: key levels for gold and crude

Gold’s surge continues, while oil is looking to build on the bounce from last week. 

Oil
Source: Bloomberg

Gold highest since US election

While indices turned lower, gold moved higher overnight, pushing to its highest level since the US election. Price action on Thursday saw dip buyers enter, so when combined with today’s developments further gains should be expected.

A pullback towards the 50-period simple moving average (SMA) at $1305 on the four-hour chart should be the kind of opportunity buyers will be looking for. Only a move below $1300 really negates the trend. 

WTI getting bullish

Having steadily dropped over the past month, WTI has moved back above the 50-day SMA ($47.34), but it needs a daily close above $48 to move above the previous lower high. A close above that level will then target the $49.40 area and then the 200-day SMA at $49.91.

A close back below $47 could potentially negate the bullish outlook. 

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.