Technical analysis: key levels for gold and crude

Gold hesitates as we approach the key FOMC meeting, yet with a clear downtrend intact, it looks like gold bears and oil bulls will soon come back into play.

Oil rig at sea
Source: Bloomberg

Further losses likely for gold

Gold is consolidating around the $1157 mark, following on from a break to a new low back on Monday.

We would need a break above $1181 to negate this recent downtrend and until that occurs, further losses seem likely. 

Brent pullback unlikely to last

Brent crude has been moving lower since the weekend’s output cut announcement. However, with price having broken through a major long-term resistance around $54.30, the current weakness looks likely to be a pullback to previous resistance.

Whether that amounts to a pullback all the way to $54.30, or just to close the gap remains to be seen. In either case, despite the potential for more short-term losses, it seems likely we will break higher once more before long. 

WTI reaches notable support level

WTI is also pulling back following a break through a crucial area of resistance. With that in mind, another leg higher seems likely, with support levels of note occurring at $52.89, $52.25 and $51.24.

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.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.