Technical analysis: key levels for gold and crude

Gold breaks below a key support level, bringing a longer-term shift in outlook. Meanwhile, Brent tests a crucial double top neckline.

Gold breaks key support, with further losses likely

Gold continues to trend lower, with the price falling below the crucial $1265 and $1260 levels. That points towards further downside, where the longer-term view is now affected to bring a wider bearish outlook, to accompany the short-term outlook.

Given the highly extended nature of this current move, it makes sense to look for retracements to short into, with $1260, and $1265 of particular interest.

Brent trading around critical support level

Brent has dropped into the key $61.04 level, following a significant decline this week.

Given the possibility of a double top formation, the ability to remain above, or break below, $61.04 will be a key determinant of the price action today.  

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