Commodities report: gold and crude

Big selling in commodities yesterday leads to brief respite today. But will it last?

Gold bars
Source: Bloomberg

Gold triangle leads to further losses
Gold continues to suffer, with the resurgence seen earlier in the week leading to yet another strong move lower upon the breakout of a symmetrical triangle. The fact we are now hitting new multiyear lows – on what seems like a daily basis – means support levels are hard to come by.

A crucial support level of note is represented at $1044, marking the 2010 low. However, ultimately the bearish outlook remains and we look for the creation of new lower highs and lows. This outlook remains unless we see a closed hourly candle above $1055, which would point towards some form of short-term recovery.


US crude sells into key support
US crude saw yet another major leg lower yesterday, sparked by the move below the big support level of $42.00. With price having now come into the $40.57 support level and posting a spinning top, there is a chance we could see some short-term bounce.

A closed hourly candle above $41.27 would signal the creation of a short-term high to accompany a higher low. At which point we would be looking towards $41.66 as the next resistance level. However, the overall downtrend is clearly dominant and thus selling seems likely to return soon enough. Support levels of $40.57 and $40.00 are the next in view.

US crude

Brent back above resistance
Brent saw strong selling yesterday, bringing price below the crucial $43.26 level. This meant the creation of a new three-month low. However, with price having first found resistance at $43.26 and subsequently broken through it, there is a possibility of a bounce from here.

A close above $43.79 would bring a bullish short-term bias, with $44.37 the next key resistance level. A close back below $43.26 would bring back the bearish bias determined by the long-term bear market. The next key support level below $43.26 is $42.50.


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.