Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Technical analysis: key levels for gold and crude

Gold and WTI both continue to exhibit excellent trends, albeit in different directions. 

Gold figure
Source: Bloomberg

Gold - is the current rally at an end?

Is a repeat of April at hand? In that month gold surged to $1295 before beginning a rapid decline. Yesterday saw the price fall from this resistance point, but it is surely too early to worry that the current rally is at an end.

We would need to see further declines below $1280 to become more negative in the short term. A surge beyond $1295 will take it to $1307 and on to $1350.

WTI - rallying back to $47?

Selling into strength worked a treat over the past two days, as a rally to $48.50 brought out the sellers, while a surprise jump in crude stockpiles sent WTI slumping.

With the price having created a new lower low in this hourly downtrend it may now rally back towards $47, but as long as it stays below $48.50 the sequence of lower highs remains intact. 

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