Technical analysis: key levels for gold and crude

Gold looks to be turning lower after continued failure to take out $1300, while oil’s apparent bullishness is ebbing away. 

Gold figure
Source: Bloomberg

Gold - no sign of pushing higher for now

We have seen gold falter at $1290 this week, with no sign thus far that another push higher is on its way. Still, the rally from the June lows is intact, so we need to see a conclusive break of $1270 to become particularly bearish on the commodity.

A close above $1300 will invalidate the bearish idea and raise the prospect of a move to $1340.

WTI facing series of lower highs

Momentum in WTI appeared to shift to the upside at the end of July, with the push to $50, but since then a series of lower highs have undermined the bullish thesis. Still, each week has seen long tails on the weekly chart since then, so there is buying pressure.

However, we need a push above $49.40 to really set the seal on a push higher to $50.50 and onwards. A turn lower from $48.20 would head towards $47, with a daily close below $46.60 likely to mean that a push back to $44 is in play. 

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