Technical analysis: key levels for gold and crude

Gold is enjoying another move higher today, while oil’s latest bounce fizzles out.

Gold
Source: Bloomberg

Gold moves higher
The move higher in gold this morning puts buyers back in charge, so now we look to the area around $1100 and then $1110. A break higher above $1110 would clear the way to a move towards $1134, the 200-day simple moving average (SMA). Any turn lower heads towards support at $1083.70, followed by $1080 and then $1071. 

Brent plunges
As oil plunges once more and the Brent crude price drops below the 50-hour SMA ($28.82), the pivot points on the hourly chart point to $27.48 and then $26.42 as potential targets.

Hourly momentum indicators are oversold once again, so a small snapback rally is possible, but these moves back to $29.81 and then $30.26 will be the cue for further selling.

WTI in oversold territory
A move back towards $29.17 would work off the oversold conditions on the hourly chart, with further resistance around $29.95 and then $31.13. Moves lower in WTI would head towards $28.11 and then down towards $26.85. 

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.