Established in 1974 Over 178,500 clients worldwide Over 16,000 markets

Technical analysis: key levels for gold and crude

Gold and WTI have been gaining ground of late. However, with both markets slowing in their ascent, there is a possibility we could see a breather in the recent upside moves.

Joshua Mahony JMahony_IG
Senior market analyst, London

2018-08-29T09:45:26+0100

Gold starting to weaken once again

Gold is showing signs of weakness once more, following a rally through trendline resistance.

However, with the 200-day simple moving average (SMA) and $1217 swing high still to overcome, there is a chance we will see the price of gold turn lower again. Watch for the ability to break through the $1217 mark as a precursor to further upside, with a strong possibility of weakness until that occurs.

Gold price chart

Gold price chart

Gold price chart

WTI consolidates amid recent attempted recovery

WTI has been trying to break from its recent period of weakness, with the price rallying into $69.22 resistance. However, we need to see a break above $70.00 to really provide a bullish signal for the price of WTI.

A break below $68.19 would signal the potential for short-term downside, yet there is a chance that such a move would be a retracement of the rally from $63.97.

WTI price chart

WTI price chart

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 writer

Aaran Fronda

London
Angela Teng

Singapore
Anzél Killian

Johannesburg
Becca Cattlin

London
Callum Cliffe

London
Chris Beauchamp

London
Daniel Dubrovsky

San Francisco
James Stanley

New York City
Jeremy Naylor

London
Jingyi Pan

Singapore
Joshua Mahony

London
Joshua Warner

London
Justin McQueen

London
Kyle Rodda

Australia
Martin Essex

London
Michael Boutros

New York City
Monte Safieddine

Dubai
Nick Cawley

London
Paul Robinson

New York
Rich Dvorak

Chicago
Sam Dickens

London
Shane Walton

Australia
Shaun Murison

Johannesburg
Victoria Scholar

London
Will Hall-Smith

London

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% 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. Professional clients can lose more than they deposit. All trading involves risk.

The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results.

CFD, share dealing and stocks and shares ISA accounts provided by IG Markets Ltd, spread betting provided by IG Index Ltd. IG is a trading name of IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. Both IG Markets Ltd (Register number 195355) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority.

The information on this site is not directed at residents of the United States, Belgium or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% 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.