Technical analysis: key levels for gold and crude

Commodities are starting the week on the front foot, with talk of more oil production cuts providing a strong boost. 

mining figure
Source: Bloomberg

Gold buyers look to be in charge again

The steady gains from last week’s low have continued, with gold nudging above $1230. From here we would look to $1240 and $1246, the latter being the 200-day and 50-day simple moving average (SMA).

Overall, the buyers look to be in charge once again, with the price action of the last few sessions indicating a turnaround in sentiment and momentum. It would take a drop back below $1215 to reverse this. 

WTI daily close below $47.12 necessary for a bearish outlook

Comments from oil ministers about further production cuts continue to supercharge the WTI rally, with the $49.40 level now being tested.

On the daily chart we then look to $50.52 and $51.36, with retracements intraday continuing to provide buying opportunities. A daily close below $47.12 is the necessary prerequisite for a return to a bearish outlook. 

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