Technical analysis: key levels for gold and crude
Gold is starting to show some initial signs of weakness after recent gains, while Brent is regaining ground in the wake of substantial losses. Will this continue, or will the wider trends come back into play?
Gold consolidating after recent ascent
Gold has been in consolidation mode since Friday, with the price starting to ease back after recent gains. The size of those gains means that we could move into retracement mode soon, yet until we see something from the price action to tell us as much, the uptrend remains intact.
As such, watch out for a break below the $1277 level to bring a more bearish short-term outlook to proceedings.
Brent continues to regain ground
The Brent sell-off has abated for now, with the break through trendline resistance adding some bullish sentiment for the short term.
The fall into $50 did seem somewhat overdone, and thus it makes sense that we see some upside for this market. Thus far we have rallied into the 61.8% level, with the 200 simple moving average (SMA) on the four-hour chart also coming into play. For this rebound to gain credibility, watch for a break through the $63.75 level. Until then, we need to see the 61.8% and 76.4% Fibonacci retracements cleared to provide greater confidence that this is not simply another retracement before we turn lower again.
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
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.