Technical analysis: key levels for gold and crude

Strong trends remain in evidence in both gold and WTI, as market dynamics still favour precious metals and crude continues its fall. 

Oil pipes figure
Source: Bloomberg

Gold continues to push higher

After stumbling at trendline resistance yesterday, gold is in the ascendant once more. The hourly chart provides one of those trends that demonstrates the strength of trend-following and adding to winning positions.

The next stop looks to be $1295, the highs from April, and then on to $1307. A drop below $1260 is needed to end the sequence of higher lows and higher highs. 

WTI - breaking lower to $44 or pushing back to $48.50?

A WTI key support area from mid-March was $47.12, and it is holding once again, preventing three attempts since Friday to break lower. If it does break then the drop to $44 could be swift.

Rallies have been firmly sold since 29 May, so any push back towards $48.50 should provide a fresh opportunity. 

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