All trading involves risk. Losses can exceed deposits.
Over 40 years’ heritage
Over 185,000 clients worldwide
Over 15,000 markets

Technical analysis: key levels for gold and crude

Gold continues to consolidate around the trendline resistance, while crude drifts lower in the wake of an intraday head and shoulders formation.

All trading involves risk. Losses can exceed deposits.
Source: Bloomberg

Gold keeps on consolidating

Gold has seen yesterday’s gains erased overnight, as the price consolidates around descending trendline resistance. That trendline originates from mid-2016, highlighting that over the long term we continue to create lower highs.

The ability to break higher from this sideways period would point towards a move into the next major resistance zone of $1303-$1307. Alternately, an hourly close below $1279 would point towards a more protracted move lower.

Gold price chart

WTI continues to trend lower – for now

WTI has been selling off throughout the beginning of this week, with yesterday’s head and shoulders completion pointing towards further losses. Crucially, thus far we are only seeing a fairly gradual move lower, which highlights the possibility of this being a short term pause before we move higher again.

A bullish short term view would come with a break through $53.29. Until then, it is likely the sellers will come in once more when the price is back above the 50-hour simple moving average (SMA).

WTI price chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts


  • Trends

    Find out how analysts use charts to study investor behaviour and understand patterns in the market. Learn to use the different charts available to you and identify price patterns as they form.

  • Orders - stops and limits

    In this section we introduce our trading platform and illustrate the ease with which you can trade CFDs on a wide range of markets. We also cover features such as stops and limits and explain how trading with leverage works.

  • Drivers of the markets

    As the essential components behind just about every other product imaginable, commodities are as vital as they are volatile. Find out how these invaluable natural resources fit into the wider trading world.