Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Technical analysis: key levels for gold and crude

Gold looks set for further upside, with a clear bottoming out in play. Meanwhile, Brent is turning lower, although another move higher looks likely before long.

Oil pump
Source: Bloomberg

Gold breaking out of bottoming pattern

Gold has been breaking higher this week, with the price pushing above the $1284 level to provide greater confirmation of a bullish short-term reversal.

Watch out for a four-hour close above that level, to provide greater confirmation. The next major level to watch is $1291, followed by $1306. 

Brent retracement unlikely to last

Brent has been pulling back this week, set against the backdrop of a clear uptrend over recent weeks. Unless we move back below $62.15, a bullish outlook remains prudent.

That being said, the $62.15 swing low is a weak one, and thus the $60.00 mark could be a better marker to use. Watch out for an hourly close above $64.56 to provide confirmation that the trend is set to continue.  

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer