Technical analysis: key levels for gold and crude
Gold and Brent diverge, as the safe haven aspect of gold sends it towards a key breakout level of resistance. Meanwhile, Brent has dropped towards a key support level.
Gold climbs towards key breakout level
Gold has been gaining ground amid the recent flight to safety and stock market weakness. The rise through $1219 was of particular importance yesterday, pointing towards further upside. However, for the bullish picture to hold longer lasting consequences, we would need to see a rally through the $1310 swing high.
With the price currently weakening around the 76.4% retracement at $1300, we could start seeing some selling pressure in the near term. However, a break below $1282 would provide us with a signal that the bullish pressure is set to ease.
Brent sell-off brings bearish picture back into play
A sharp decline in Brent yesterday brought about a fall below the $69.90 swing low, raising the chances of a wider bearish picture coming into play.
The head and shoulders formation seen throughout April is coming back into relevance, with the price of Brent having to overcome trendline support and the $69.14 level to bring about a renewed bearish outlook for the medium term.
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.
React to volatility on commodity markets
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
See opportunity on a commodity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a commodity?
Don’t miss your chance. Upgrade to a live account to take advantage.
- Analyse and deal seamlessly on fast, intuitive charts
- Get spreads from just 0.3 points on Spot Gold
- See and react to breaking news in-platform
See opportunity on a commodity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
