Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% 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.

Technical analysis: key levels for gold and crude

Dollar strength has hit gold hard, with a potentially bearish move underway. WTI, meanwhile, is still unable to break above a key trendline. 

Oil pipelines
Source: Bloomberg

Gold suffering negative outlook

Gold bulls have had a tough period recently, seeing the price drop below the post-June rising trendline. With the price now back below $1300, and a sequence of lower highs and lower lows having been created, the next area of possible support would be $1264.

It looks like rallies will be sold, so it needs a move back above $1315 to reverse the negative viewpoint. 

WTI still pushing February trendline

The WTI daily chart remains the one to watch here, as the price continues to bump its head up against the February descending trendline. A move below $50 would likely signal that a fresh downward leg is underway, with $48.39, the 50-day simple moving average (SMA), and then $47.41 area coming into play as downside targets.

A move above $51 would break the downtrend line, and signal another potential push to the May high at $52. 

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 writer