Technical analysis: key levels for gold and crude

Gold has failed to push on, but oil prices are still in fine form.

Oil pipe work
Source: Bloomberg

Gold slumps
A new lower high was made yesterday, so for the time being it looks like we may see more gold weakness, perhaps down towards $1240 or on towards $1235 and the rising trendline. A bounce will need to push on to $1265 and then $1280. 

Yesterday’s WTI move puts the price above the key $40 level, which was support in mid-November last year. The 200-day simple moving average (SMA) comes into view now at $42.45, coinciding with the lows of October around $42.60. Dips back towards the 200-hour SMA ($38.37), or even a repeat of Tuesday’s sell-off, should be viewed as ideal buying opportunities. 

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.