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CFDs are complex instruments. 70% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money. CFDs are complex instruments. 70% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Technical analysis: key levels for gold and crude

Gold is back above $1200, a sign of a possible reversal in the price, while oil has failed to make much headway on the upside.

IG Analyst

Publication date : 2017-03-15T09:07:53+0000

Gold bars

Source: Bloomberg

Gold coming back up?

Gold tumbled back below $1200 last night but managed to claw higher, with this key level still providing some signs of buying pressure. However, it still needs to create a new higher high above $1215 to indicate further upward moves are on the way.

A close above $1220 would be the definite sign that more gains are in store. If $1200 breaks, we could see a move to $1180, the 27 January low, with the possibility this will be followed by further falls in the direction of $1124 and the December 2016 low.

Gold chart

Gold chart

Gold chart

WTI in an unsure place

A sharp WTI rally off the lows yesterday could have been short-covering, but it still left the price unable to break back above $49.50, and also stuck below the rising trendline off the February 2016 lows.

Crucially, the price created a new lower low on the hourly chart, suggesting the bounce is another selling opportunity, albeit on a day when EIA inventories and the Federal Reserve decision promise elevated volatility. The price would need to break back above $50 to indicate firm momentum to the upside, while a drop below yesterday’s low at $47.60 would be a definite indication of more declines, perhaps as far as $45.10.

WTI chart

WTI chart

WTI chart

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