Technical analysis: key levels for gold and crude

While oil prices continue their descent, gold looks to be on the cusp of rolling over. 

Oil barrels
Source: Bloomberg

Gold dipping again
Having unwound most of the gains of 3 and 4 December, gold is moving below $1070, with a firm close below this level targeting $1061 and then $1050. Any bounce higher would head towards $1079 and then $1082.

Brent heading lower
Bounces in Brent crude appear to be short-lived at present, and it really appears to be a case of waiting for the next big move down. So far $39.50 is still support, as it has been over the past two days, and a move lower will target $38.68 and then $37.91. Resistance is likely around $40.35 and then $41.12.

WTI in flux
An intraday rally has moved the price away from support at $36.50, with the next area to watch being the 50-hour simple moving average at $37.19, and then on towards yesterday’s peak around $37.50. A move down heads towards support at $35.70 and then $35.02.

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.