Technical analysis: key levels for gold and crude

Gold is in a bullish phase following a recent retracement, while Brent crude is showing signs of possibly setting up a retracement buying opportunity.

Gold back in a bullish phase

Gold has been regaining ground since Friday’s lows, with the price having retraced below the 61.8% retracement level.

Crucially, we have seen the price creating higher highs and lows, with that recent pullback providing yet another higher low to push higher from. We appear to be in the bullish phase now, pointing towards further upside to come. With that in mind, a bullish outlook is in play unless price breaks below $1320.

Brent pulls back to Thursday swing low

Brent has pulled back into the $70.85 swing low this morning, bringing about the possibility of a more protracted retracement.

The ability to post an hourly close below that point would provide a signal that we are set to retrace the wider $66.61-$72.79 rally. As such, watch for a response to the $70.85 swing low as a gauge of where we go next, with a break lower pointing towards a move into Fibonacci support. Such a move would be perceived as a buying opportunity, as long as the price does not fall below $66.61. 

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research 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 and quarterly summary.