Technical analysis: key levels for gold and crude

Gold prices have consolidated after two days of gains, while a breakout in oil prices looks to point towards a fresh upward move.

Oil steam injection pipe lines
Source: Bloomberg

Gold seeks bullish momentum
Two days of gold gains have given way to small losses, but if the price can hold above $1270, we may see fresh bullish momentum develop.

Upside gains may be contained by the downtrend line off the highs from the beginning of the month at around $1287.

First line support in any further drop would be $1260, and then on to the 50-day simple moving average (SMA) at $1250.

Gold price chart

WTI looks upward
Yesterday’s WTI surge has accomplished what bulls were waiting for – an opening above the $46 resistance level. As a result, we would argue upside momentum is back with a vengeance. The next target is the November 2015 high at $48.27, and then on towards $51. 

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 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.