Technical analysis: key levels for gold and crude

Gold manages to punch through a key resistance level, with crude prices also starting to look bullish. Will this commodity surge last?

Worker inspecting oil barrels
Source: Bloomberg

Gold breaks higher once more

Gold has managed to break through the key $1207 mark this morning, paving the way for further gains. Considering the recent rally has come amid a widespread period of equity and dollar strength, the potential for a reversal in both provides a very supportive environment for gold.

The $1200 mark represents the backstop to any pullback, where an hourly close below that level would provide a more bearish outlook. However, until then, a bullish view is back in place, with further upside unlikely to run into any significant resistance for quite some time.

Brent seeking another move higher

Brent crude has managed to create higher highs and higher lows on an intraday basis, following a pullback into the 76.4% retracement. Given that we still remain above the long-term inverse head and shoulders (weekly timeframe), there is a chance we could start to see a resurgence, with $56.63 the first major hurdle to navigate. A bullish short-term is now in place, with an hourly close below $55.45 required to negate this bullish outlook.

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.