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 continues to hesitate as we await a potential push higher from this consolidation. Meanwhile, Brent trades within a triangle formation, above a crucial long-term support level.

IG Analyst

Publication date : 2017-01-24T09:51:13+0000

Gold bars

Source: Bloomberg

Awaiting gold breakout

Gold pulled back to $1209 support yesterday following a failure to break through the all-important $1219 mark. Following a break and retest of $1200 last week, there is reason to believe we will see gold push higher in a meaningful manner. We would need a convincing break through $1219 to provide greater confidence that this is about to occur.

Conversely, an hourly close below $1209 would bring about a question over whether we could soon be back at the key $1200 level.

Gold price chart

Gold price chart

Gold price chart

Brent rallying into key Fibonacci resistance

Brent crude is moving higher once more this morning, with price continuing to trade within a symmetrical triangle formation. Interestingly, the trendline resistance ahead also coincides with the 76.4% retracement, providing a good shorting opportunity.

Conversely, given the existence of the long-term inverse head and shoulders neckline around $53.00-54.30, a reversal higher is certainly a possibility. Yet we would need to see a break through $57.19 to provide a bullish outlook. Until then, there is a good chance we will see this rally sold into once more.

Brent crude price chart

Brent crude price chart

Brent crude price 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.

Find an article

Find articles by writer

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.

This website is owned and operated by IG Bank S.A. Registered address at 42 Rue du Rhone, 1204 Geneva, authorised and regulated by FINMA.

The information on this site is not directed at residents of the United States and Belgium, or any particular country outside Switzerland and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.