Technical analysis: key levels for gold and crude

Gold looks set for another challenge at the crucial $1264 level, while WTI manages to break through key Fibonacci resistance.

Oil pump
Source: Bloomberg

Gold rebounds towards crucial resistance level

Gold has been respecting trendline support over the past fortnight, with ascending lows accompanied by higher highs. However, looking back to late February, it is clear that we are trading around a crucial $1264 resistance level. The attempted break through that level last week was greeted by a sharp move lower.

As such, it is worth noting that the ability to break through this big resistance zone is going to be the key determinant of what this market looks like going forward. Watch out for resistance at $1261, $1264 and $1271. To the downside, a break below $1247 would provide a more bearish outlook.

WTI continues to gain ground

WTI has continued to push higher this week, with the price moving through the 76.4% retracement yesterday. Crucially, we have now seen that level being utilised as new support following yesterday’s resistance.

That provides us with a stronger chance that we are going to see a break back through or into the previous resistance zone around $55.00. As such, we could see further upside, with the continued creation of higher highs and higher lows key to further gains. 

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