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

Technical analysis: key levels for gold and crude

Consolidation is the name of the game, with both gold and Brent continuing to range after substantial rallies. With that in mind, range bound trading strategies make sense. 

Gold
Source: Bloomberg

Gold consolidating after channel break

Gold is proving remarkably resilient following a bearish shift last week, after price fell out of an ascending channel and below the key $1228 support level. We have since seen a period of consolidation, with a symmetrical triangle coming into play.

Ultimately we need to see a break through $1219 to provide a bearish signal. However, to the upside it is more difficult as any rally that falls short of the $1245 level could look like a retracement of the pullback from that level. As such, a push through $1245 is required to become bullish once more.

Gold chart

Brent in the middle of its range

Brent has turned lower from the upper end of its 2017 range, with a clear tug-of-war going on between bulls and bears over recent months.

The $53.00 mark is what needs to be broken to the downside to provide a more bearish medium-term outlook, whereas a break through $58.47 would signal a bullish resolution. Until either of these happen, it makes sense to keep playing the range. Further downside looks likely for now, with longs coming back into play around $55.00.

Brent 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.