Technical analysis: key levels for gold and crude
Gold and crude go their own ways, with gold heading for a five-month high, while Brent looks set for another leg lower.
Gold heading towards five-month high
Gold has broken from its short-term retracement, with a break through the $1247 mark providing the signal that we are set to rise through the $1250 mark.
Should that occur we would have set a new five-month high, extending this current bullish leg that has been in play for over a month. Thus, look for a break through $1250 to provide further short-term upside.
Brent looks set for another leg lower
Brent crude has broken below the key $58.48 support level this morning, falling out of the gradual ascendancy that has been playing out since OPEC+ (which is the Organisation of the Petroleum Exporting Countries [OPEC] plus the inclusion of non-members such as Russia, Mexico and Kazakhstan, among others) cut production.
The fact that we have seen a breakdown from the recent trend of higher highs and higher lows means that the next rebound is likely to fall short of the $62.07 peak reached on Thursday. As long as we do not break through that $62.07, a bearish outlook is in play where any short-term upside is seen as a selling opportunity rather than a reason to become bullish.
This information has been prepared by IG, a trading name of IG 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.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Be ready to act on ECB opportunities
Learn how the ECB’s monetary policy announcements affect interest rates and price stability ahead of its next meeting in 22 April 2021.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
