Technical analysis: key levels for gold and crude

Gold looks set for further upside amid recent gains. Meanwhile, Brent is finally starting to show more bullish signals in the middle of wider declines.

Gold uptrend continues unless told otherwise

Gold has been trending upwards in a remarkably consistent manner. This looks likely to continue further, with a short-term downside providing little in the way of anxiety for bulls.

The key bearish signal to watch for is a drop below the most recent swing low, which is currently $1279. Until then, further upside seems likely from here.

Gold chart

Gold chart

Brent could return to test trendline resistance once more

Brent managed to rally into trendline resistance yesterday, with the price drifting lower since. However, with crude prices seemingly forming a bit of a base, there is a good chance we will see another push upwards to attempt to break through that same trendline.

This would be the first bullish signal following a protracted sell-off that took Brent from $86.00 to $50.00. With the price so oversold, there is a good chance we will see the bulls start to gain some traction, and thus, as long as we remain above the $52.02 swing low, further upside seems a distinct possibility.

Brent chart

Brent 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. 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. See full non-independent research disclaimer.

See an opportunity to trade?

Go long or short on more than 16,000 markets with IG Bank.

Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.