Technical analysis: key levels for gold and crude

Gold has fallen through vital support, while WTI bulls are slowing the pace of declines in the asset. 

Gold slumps to fresh lows for the year

Gold ran into $1245 yesterday, the area that stalled progress to the upside on Monday, and promptly turned lower and dived straight through key support at $1236, taking it to new 12-month lows.

New areas to watch for possible support are $1213 and $1205. The commodity has clocked up lower highs since April, so a close above $1266 is needed to reverse the ongoing bearish view here.

WTI fall slows

The bears continue to dominate in WTI for now, but they have been unable to make much more headway over the past two days.

The price continues to hover above $66.00, so is still a higher low within the current uptrend. The $64.00 zone is the next possible area of support. A turn higher will see the price push towards $67.40, and then to $71.00. 

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