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Technical analysis: key levels for gold and crude

Gold remains determined to push higher, while oil could be poised for a new move lower.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-04-05T09:54:52+0100

Mining

Source: Bloomberg

Gold recovering quickly

A small pullback yesterday has already been recovered, and now we wait to see if gold can push above the 200-day simple moving average (SMA) at $1257. Above here the targets remain $1271 and $1281.

Any failure to push on from current levels raises the risk of a move back to $1240 and then down to the 50-day SMA at $1231.

Gold price chart

Gold price chart

Gold price chart

WTI with obstacles ahead

Tuesday’s dip simply brought out yet more buyers for WTI, and now the price faces hurdles at the $52 level, with this resistance point amplified in strength by the presence of the 50- and 100-day SMAs ($51.87 & $51.83 respectively). A break above here puts the price back in the range that dominated from December until March, and would potentially suggest a return to the 2017 highs at $55.67.

A turn lower from here would still be encouraging for the bears, since it would mark a failure at $52, and also a new lower high. It would suggest a move back to the 200-day SMA at $49.11, and then down to the still intact rising trendline off the April lows.

WTI price chart

WTI price chart

WTI price chart

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