Technical analysis: key levels for gold and crude

Gold sell-off looks to provide a buying opportunity, while crude weakness continues to persist after recent selling.

Oil pump
Source: Bloomberg

Gold weakness could be short-lived

Gold has been selling off overnight, with the price having passed the 61.8% retracement this morning. Given the recent uptrend, there is a good chance we could see the price begin to rally once more from here.

On the wider perspective, the inability to break through $1296 provided mixed signals as to whether this trend will continue. However, it still looks attractive to be long at a deep retracement as long as we do not break below $1259.

Brent continues to pull back

Brent has suffered overnight, with the recent downtrend picking up momentum once more. To the downside, the next level to watch out for is $46.70.

For now, we have a clear downtrend in play so it makes sense to sell on rallies as long as we don’t see a break through $50.36 resistance.

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.