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 and Brent are beginning to look like we could see a move back towards the downside, in accordance with the wider outlook.

IG Analyst

Publication date : 2017-08-07T09:50:34+0100

Oil figure

Source: Bloomberg

Gold looks to be turning back onto bearish path

Gold has been turning lower following the rally into Fibonacci resistance last week, with the bearish medium-term outlook coming into play.

With that in mind, any rally from here looks like a potential selling opportunity as long as the price does not break above $1270. Watch out for the Fibonacci levels as potential areas for shorts.

Gold chart

Gold chart

Gold chart

Potential top for Brent forming

Brent is trading within a symmetrical triangle formation, with lower highs accompanying the higher lows. This is not necessarily a bearish reversal pattern, yet the longer term outlook for Brent points towards a potential move lower in the near future.

With that in mind, shorts are preferred unless we break above $53.00. That being said, for greater confidence, watch out for an hourly close below $51.45 to provide a bearish signal.

Brent chart

Brent chart

Brent chart

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