Skip to content

CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Technical analysis: key levels for gold and crude

Gold breaks below a key support level, bringing a longer-term shift in outlook. Meanwhile, Brent tests a crucial double top neckline.

Video poster image

Gold breaks key support, with further losses likely

Gold continues to trend lower, with the price falling below the crucial $1265 and $1260 levels. That points towards further downside, where the longer-term view is now affected to bring a wider bearish outlook, to accompany the short-term outlook.

Given the highly extended nature of this current move, it makes sense to look for retracements to short into, with $1260, and $1265 of particular interest.

Brent trading around critical support level

Brent has dropped into the key $61.04 level, following a significant decline this week.

Given the possibility of a double top formation, the ability to remain above, or break below, $61.04 will be a key determinant of the price action today.  

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.

Find articles by writer