All trading involves risk. Losses can exceed deposits.
40-year heritage
152,600 clients worldwide
15,000 markets to trade

Technical analysis: key levels for gold and crude

It looks like both gold and oil are headed lower, with bullish momentum fading in both commodities.

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

Gold dropping down

It seems that we will continue to see gold weaken, with the pullback in a broader uptrend still playing out. Trendline resistance has held back gains over the past two sessions, and a drop through $1275 would likely open the way to $1264, the previous high in this rally.

Bulls will need to wait until we see the price move back to $1253 and the 200-day simple moving average (SMA), or even down to the rising trendline around $1245. 

Gold price chart

WTI down again

The brief recovery four WTI yesterday has given way to more losses, and now we look to see if the sellers can breach $50.52.

A close below this opens the way to the 200-day SMA at $49.40, and then down to the rising trendline around $48.10. Any rally needs to clear $51.34, the high from Thursday’s session.

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

Education

  • Types of risk

    All financial investments carry some level of risk. Find out how you can help to protect your portfolio by measuring the risks you face and managing this exposure sensibly.

  • Pricing and weighting

    Find out the purpose of major and minor stock indices and how they are compiled. Learn how to gain exposure to these volatile markets through some of the most popular trading products in the world.

  • Pricing

    In this section we offer an introduction to financial spread betting and how it works, featuring examples and reasons to spread bet. We also discuss the related pricing and funding requirements.