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Technical analysis: key levels for gold and crude

Gold has finally shaken itself from its torpor, while oil has recovered from the lows of last week.

Gold mining
Source: Bloomberg

Gold eyes new gains

The surge at the end of last week saw gold spike to the highest level in a month. A close above $1295 would open the way to $1307 and then $1326.

Having maintained a steady sequence of higher lows since early November, it would take a close below $1275 to create a new lower low.

Gold price chart

WTI looks to maintain momentum

The bounce from $55.00 gave dip-buyers a chance to hop on board the current uptrend for WTI. Although, if the price fails to push on back to $58.00, then we have a new lower high, a potentially bearish situation.

However, we would need to see a drop below $55.00 to create a new lower low. Below $55.00, and potential areas of support will be $54.05 and $52.93. Above $58.00, the price heads towards $62.56.

WTI price chart

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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.