Technical analysis: key levels for gold and crude

Oil bulls have been given a chance to join the fun as the price drops back following the breakout this week. Meanwhile, gold is trying hard to rally.

Oil platform
Source: Bloomberg

Gold tries to bounce

Having been sold heavily over the past few days, gold is looking to climb higher. However, this retracement will be another selling opportunity if it fails to break above $1310.

For now the bears remain in charge and should wait for a rally to add to positions. A move above $1310 would target $1335. Meanwhile, if the bounce falters now and moves below $1278, then $1264 and $1246 come into play as potential downside targets.

WTI dips after breakout

A sharp pullback will have caught some by surprise, but those looking to get on board following WTI's breakout earlier this week will view this move as a buying opportunity.

Indeed, any dip that holds above $51.00 should be viewed as such, with a bounce targeting the $53.00 once more. Above here $54.05 and $55.00 come into play. 

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

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.