Over 40 years’ heritage
185,800 clients worldwide
Over 15,000 markets

Technical analysis: key levels for gold and crude

Gold starts to show signs of weakness, yet the recovery remains intact for now. Meanwhile, crude prices show some signs of a resurgence as we await the next move. 

Gold bars
Source: Bloomberg

Gold threatening to break lower

Gold is breaking below trendline support this morning, despite the sell-off occurring in the major indices. The most significant sell signal comes not with the trendline break, but instead an hourly close below $1265.

Should that occur, it would point towards a move back into $1260 and possibly $1246. Until that happens, the uptrend remains intact.

Gold

Brent seeks to hold above key support level

Brent has managed to break back above the $51.23 level, which represented the double-top neckline broken on Tuesday. The ability to maintain price action above this level is key to looking like we could see a bounce from here.

Nevertheless, the breakdown did not really take shape and unless we start seeing selling pressure back below $51.23 and $50.60, a bullish signal seems likely with a break above $51.86.

Brent

WTI attempting to move back below support

WTI failed to break above $50.22 yesterday, with price moving back into and temporarily below $49.70.

Much like Brent, the picture is somewhat convoluted and as such it makes sense to await a breakout from the $49.01-$50.22 zone for the market bias.

WTI

The information 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 and as such is considered to be a marketing communication.