Technical analysis: key levels for gold and crude

Weakness in commodities today comes off the back of two good days. However, bulls need to keep the momentum going to avoid the risk of a bigger drop. 

Oil rig
Source: Bloomberg

Gold

The price looks ripe for a pullback once more, having tried twice in the past 24 hours to move above $1255. As long as the price holds above $1240 the bulls may be able to push higher once more, with a break above $1255 taking us on towards $1280 for gold.

A drop through $1240 pushes the price towards support at $1230, while below this we return to our old friend, $1200. 

Gold

Brent

The price for Brent has fallen back to the 200-day simple moving average ($43.20), but as long as it holds above $42.50 a new bounce may materialise. A break above yesterday’s high at $44.50 would signal a move to the $48.40 area.

Weakness may see the price drop towards $41.50, remaining within the uptrend off the April low. 

Brent

WTI

The $42.60 level continues to mark significant resistance to any upward progress, and with bullish momentum having stalled in recent days we may see a bigger drop, first to $39.50 and then on towards $38.

A breakout above $42.50 would target $46.20 over the longer term, with some resistance along the way at $44.80 for WTI.

WTI

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 analysts

This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa 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. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.