Technical analysis: key levels for gold and crude

Gold begins to turn lower following recent gains. Meanwhile, Brent has finally hit $70, with traders awaiting a breakout or rejection.

Gold begins to turn lower

Gold is in retracement mode, with the price turning lower this week following a stellar run of late. This pullback is unlikely to be anything other than a short-term retracement.

However, that does not negate the potential for further immediate downside. Watch out for near-term trendline and horizontal support. Still, as long as we do not break below $1306, then an upside reversal looks likely before long. Should the price fall below that level, then the recent uptrend could come under pressure.  

Brent continues to struggle

Brent reached the crucial $70.00 handle yesterday, with the price subsequently turning lower this morning.

We have seen Brent hesitate around this area of historical resistance (2015 peak) over recent trading days. The ability, or inability, to break through this level of resistance will set up the forthcoming weeks. As such, it makes sense to await a convincing break above $70.00 (bullish), or below $68.40 (bearish).

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.

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