CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Technical analysis: key levels for gold and crude

Gold appears to be heading towards $1200, with price breaking through a key resistance level this morning. Meanwhile, a sharp deterioration in crude is slowly being reversed, with the uptrend still intact.

IG Analyst

Publication date : 2017-01-04T10:25:56+0000

Gold bars

Source: Bloomberg

Gold attempts to break back into bullish trend

Gold has been gaining ground since hitting the 76.4% retracement in December. We are seeing further gains coming into play in 2017, with price challenging the key $1165 resistance level.

An hourly close above $1165 would provide a bullish signal, with the $1181 and $1200 levels coming into view. We would need a break back below $1146 to negate this bullish outlook.

Gold price chart

Gold price chart

Gold price chart

Brent falls into key Fibonacci support level

Brent crude saw significant selling yesterday, wiping out a week’s worth of gains. That deterioration took us into the 76.4% retracement level, providing a cheap long entry.

We are now gaining ground from that $55.55 level. A bullish outlook will be in play unless we break back below $54.65.

Brent crude price chart

Brent crude price chart

Brent crude price chart

WTI attempting to claw back ground

WTI also saw amplified losses yesterday, with many struggling to explain exactly why. In any case, this brought us back to the 76.4% retracement.

While the sharp nature of that sell-off is a little bit of a worry, a bullish outlook remains as long as the price remains above $52.16.

WTI crude price chart

WTI crude price chart

WTI crude price chart

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