Technical analysis: key levels for gold and crude

Gold and crude follow the indices lower, with substantial losses instigated on Friday. However, while this sets a precedent, there is a chance for a bounce in the meantime. 

Source: Bloomberg

Gold sell-off likely to continue

Gold has seen a continuation of the weakness seen on Friday, with the continued creation of lower highs and lower lows. This morning has seen price rally into trendline resistance, which coincides with the $1330 swing low from Friday. 

Whether or not price sells off from here, the key is the ability to continue creating lower highs and as such, a bearish view remains unless we see an hourly close above $1340.



Gold chart

Brent sell-off catches a bounce 

The recent sell-off for Brent has brought price back below the $48.33 swing lower, providing us with a clear bearish outlook. 

However, we still have not seen a significant bounce and given the strength seen this morning, it is worth considering whether we will see that today. 

Given that the next important support level is relatively near at $47.08, it makes sense to await a break below that level to signal the continuation of this downtrend. Otherwise, keep on the lookout for short-term reversal signals with the retracement likely to be sizeable given the sell-off preceding it.


Brent chart

Will WTI take a breather?

WTI has similarly sold-off heavily, with price breaking below the key $46.16 swing low. We are clearly oversold on the four-hour chart, and with the price attempting to make its first green candle in ten, there is a potential for a bounce in WTI. 

A break back below $45.28 could lead us on another leg lower, yet a bounce towards $46.16 seems a strong possibility from here. 

WTI 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.