Technical analysis: key levels for gold and crude

Gold continues to look like it is about to move higher, but oil’s drop yesterday points toward more downside. 

Gold bars
Source: Bloomberg

Gold comfortably high

Gold has stabilised above $1220, and with further momentum we can expect a move above $1229 and then to $1254.

Dips should continue to be bought, with possible support at $1210. A reversal below $1200 is needed to put the price back on a bearish trajectory.

WTI descending

The WTI drop back yesterday from the lower high confirms the bears are still in control.

We now need to see a push back below $47.50 to suggest further downside and create a new lower low. However, as long as the price remains below $50, it looks like further losses are in store here. 

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