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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 begins to turn lower following recent gains. Meanwhile, Brent has finally hit $70, with traders awaiting a breakout or rejection.

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Gold begins to turn lower

Gold is in retracement mode. This pullback is unlikely to be anything other than a short-term retracement.

However, that does not negate the potential for further immediate downside. Watch out for near-term trendline and horizontal support. Still, as long as we do not break below $1306, then an upside reversal looks likely before long. Should the price fall below that level, then the recent uptrend could come under pressure.

Brent continues to struggle

Brent reached the crucial $70.00 handle yesterday, with the price subsequently turning lower this morning.

We have seen Brent hesitate around this area of historical resistance (2015 peak) over recent trading days. The ability, or inability, to break through this level of resistance will set up the forthcoming weeks. As such, it makes sense to await a convincing break above $70.00 (bullish), or below $68.40 (bearish).

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