Technical analysis: key levels for gold and crude

Commodity prices are looking to bounce after a difficult week, although there is much work to be done to reverse the current bearish picture.

Gold figure
Source: Bloomberg

Gold - will it hold the $1225?

It has not been fun for gold bull over the past month – the 5.4% fall since mid-April mirrors, the February/March pullback. If the price can hold the $1225 low from last week then we could see a push back to $1240 and then the 200-day simple moving average (SMA) at $1249.

The latter would put the price back above the December rising trendline, and potentially suggest a move back to $1300. A drop back below $1225 would open the way to the 100-day SMA at $1222 and then down to the $1195 March low.

WTI may see more gains 

Friday’s price action reinforces the idea that a bounce is in the offing for WTI. A fall to $44 brought out the buyers, and, while the price is falling back from $47.12, the overnight high, more gains could be on the way.

The next levels to watch are $49.40 and then $51.40 on the upside. A failure to move on above $47 would suggest a move back to $45 and back down to $44. 

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