Technical analysis: key levels for gold and crude

Gold remains constrained by strong resistance, while oil continues to hold an eight-month rising trendline.

Gold fails to move higher again

Gold continues to bump its head against $1307, as previous key support turns into seemingly insurmountable resistance.

The short-term push higher from the May lows, marked by the rising trendline from the $1282 low, remains intact. This might suggest another push back to $1307, but bulls need a daily close back above this level to suggest a really bullish turn. A move below $1295 would negate the trendline and lose key horizontal support from the last few days, opening the way to the $1282 low.

WTI holds support

While the price fell back yesterday from its Wednesday high, WTI has held the $66.58 area, and in the process created a higher low from the $66.00 lows at the beginning of the week.

A push higher targets $68.70, the high from Wednesday, which will also bring it into contact with the descending trendline from the recent highs. From here, $69.54 and $73.00 come into view. A break below $65.50 would suggest a more bearish view, and crucially break rising trendline support that has held since October. 

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.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.