_SMALL160217.png/jcr:content/renditions/original-size.webp "Oil chart")
_LARGE160217.png/jcr:content/renditions/original-size.webp "Oil chart")
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 Bank S.A. 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.
Gold breaking higher from trendline support
Gold has proved a tricky customer over the past 24 hours, with an initial break through triangle support failing to last, sending price higher. The subsequent break through the trendline and $1234 resistance has provided a more bullish picture. However, it is the respect of the triangle top as new-found support, which makes things look more bullish. The price has since rallied to the 76.4% retracement at $1238, which will be key to determining whether we are set for a bearish turn lower or not.
A strong rally through $1238 would provide a lower chance of this recent downturn persisting. However, with gold having broken out of an upward channel, there is a chance we could see a deep retracement within a bearish reversal. Ultimately, a reversal lower from here would point towards a good chance of the market being within a near-term top, while a break through $1245 would signal a resumption of the uptrend.
.jpg)
