40 år i branschen
185 800 kunder världen över
15 000 marknader

Technical analysis: key levels for gold and crude

As gold hits a major support level and Brent creates a head and shoulders formation, there is a distinct possibility that today could see a reversal of fortunes for commodities.

Gold bars
Source: Bloomberg

Gold back to major support trendline
Today we are looking at the wider picture for gold, which has returned to a major trendline support. This trendline originates from the symmetrical triangle formed through the February-April period. How gold reacts to this trendline will be crucial to the day’s price action.

Given the uptrend in place over the past five months, there is a good chance people are looking to get long. With that in mind, a break higher and through the near-term resistance at $1268 could provide a spark to see this market surge today.

Alternately, a closed hourly candle through trendline support could provide yet another flush lower to continue the recent downtrend.

Gold daily chart

WTI at crucial support level
​The price fell heavily towards the $43.58 support level yesterday, in a continuation of the sideways consolidation we have seen over the past two weeks. This $43.58 level will be crucial to the day’s price action, where a continuation of this range is likely until we see an hourly close below $43.58.

Should that occur, the next support levels of note are $42.70 and $42.03. However, with price currently at the 76.4% retracement, a rally towards $46.00 is still a clear possibility from this deep retracement.

WTI daily chart

Brent leads the way, breaking to 19-day low
​The price has already seen a break lower, falling below $44.18 yesterday. This is a distinct warning sign for those trading Brent, with a head and shoulders pattern pointing to a high likeliness of further losses. In particular, a closed hourly candle below $43.52 would likely spark another leg lower.

Given that the head and shoulder projection comes in around $40.00, there could be significant downside to come. However, a break back through $46.43 resistance would negate this bearish view.

Brent daily chart

Denna information har sammanställts av IG, ett handelsnamn för IG Markets Limited. Utöver friskrivningen nedan innehåller materialet på denna sida inte ett fastställande av våra handelspriser, eller ett erbjudande om en transaktion i ett finansiellt instrument. IG accepterar inget ansvar för eventuella åtgärder som görs eller inte görs baserat på detta material eller för de följder detta kan få. Inga garantier ges för riktigheten eller fullständigheten av denna information. Någon person som agerar på informationen gör det således på egen risk. Materialet tar inte hänsyn till specifika placeringsmål, ekonomiska situationer och behov av någon specifik person som får ta del av detta. Det har inte upprättats i enlighet med rättsliga krav som ställs för att främja oberoende investeringsanalyser utan skall betraktas som marknadsföringsmaterial.