Technical analysis: key levels for gold and crude

Hopes of a bounce back in gold and oil have been dashed once more, as the losses continue. 

Oil pump
Source: Bloomberg

Gold lower highs and lower lows continue

The bears continue to hold sway in gold, as the price pushes through last week’s low and the current pullback extends for yet another session. A potential support area could be $1246, followed by $1240, and then the 200-day simple moving average (SMA) at $1237.

The hourly chart continues to exhibit a sequence of lower highs and lower lows, so unless this is broken the selling will continue.

WTI – May low on the way?

WTI also shows no sign of reversing its downtrend, with only a short distance left until the price hits the May low of $44.

The next stop after this would be $42.80. A recovery above $45.50 would be the first step in any turnaround. 

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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.