Technical analysis: key levels for gold and crude

Oil prices have hit fresh highs for the year, while gold is once again attempting to push on through $1250.

Gold bars
Source: Bloomberg

Gold moving higher
Prices are moving back to the top end of the range, with the key $1250 - $1265 area now in prospect. However, it needs a breakout above $1260 to confirm that we are looking at a move back to $1280. Otherwise, the rally could peter out and then move back down towards $1220.

Brent puts bulls in charge
Having hit a fresh high for the year it would seem that the buyers are firmly back in charge. With the price now firmly overbought intraday, and with so much data out in in the next few hours, it may be that the price moves lower, perhaps down to $45.50, or the 50-hour simple moving average (SMA) at $45.14.

The probability of a drop back down is heightened by the fact that the price is now at the late November high of $46.50, so this resistance needs to be cleared for any further advance.

WTI aims for November high
Having pushed on to new highs for the year, WTI now looks to move in the direction of the early November high at $48.30. The trend for April is a firmly rising one, so with the price overbought intraday it may prove to be sensible to wait for a bigger pullback, down to the 50-hour SMA at $43.55, rather than chasing the move of the past 24 hours. 

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.