Technical analysis: key levels for gold and crude

Gold selling persists as it approaches a crucial support level, while Brent shows some signs of a potential resurgence.

Gold bar
Source: Bloomberg

Gold falling into crucial support level

Gold continues to tumble, after peaking around $1300 last week. While up until now things have looked like a potential retracement, a break below $1259 would signify a bearish shift for this market.

As such, the ability or inability to break below $1259 will shape the outlook for the rest of the week.

Is Brent beginning to look more bullish?

Brent has managed to break through trendline resistance this week, with the price remaining above the 200-day simple moving average (SMA) for the longest time since this recent downtrend began.

That points towards the potential for a trend shift, yet we would need an hourly close above $50.36 to confirm that bullish reversal. 

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