Technical analysis: key levels for gold and crude

Oil prices have revived but gold’s descent shows little sign of stopping. 

Oil rig
Source: Bloomberg

Gold

There seems little end in sight to gold’s bear run, having smashed below the 50-day simple moving average and continued to retreat towards the 100-day SMA at $1213.

During March and April the $1220 area stemmed downside movements, so bulls will be watching this, but given the rapid break lower of recent days it is still likely that rallies will be sold. The next target below the 100-day SMA is $1180.

Gold

Brent

The price is heading back towards $50, the highs from earlier in the month, so bulls will be watching to see if a fresh breakout can occur. The next stop above here would be $50.91.

It would take a move back below $47.50 to negate the expectations of fresh bullish momentum for Brent.

Brent

WTI

Here too, recent resistance is about to be tested again, although with intraday prices overbought and crude inventories up later profit-taking may occur to some degree.

The next target in any further bullish move is $51, the high from October 2015, while above this WTI's price will encounter possible resistance at $53.90. 

WTI

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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.