Technical analysis: key levels for gold and crude

Gold is testing key support once more, while oil has managed to move back above important near-term support.

Gold bears take charge again

Gold is under fresh pressure this morning, as the brief bounce from the end of last week fizzles out. It is still, for now, holding support around $1205, but a close below this targets $1195 and then $1180.

Having spent the week holding $1205, a break of this support would likely lead to a swift drop. A recovery above $1220 would signal some near-term strength, but as was the case last week a close above $1236 is needed to create a new higher high.

WTI clambers back above support

Friday saw WTI stage a late recovery that put it back above the $66.60 support zone. However, the bounce is starting to slow, suggesting a drop back towards $66.00.

Below this, the $63.80 support zone from the June lows comes into play, and then down to $62.56. A rally back above $69.00 would target the descending trendline from the June high at $74.08, suggesting trendline resistance around $70.00. A breakout above here would bring $73.00 and $74.00 into view.

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