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 is moving into a crucial support zone, while the recent downturn seen in Brent could be on borrowed time.

Video poster image

Gold downturn brings market into key support zone

Gold has continued its decline, with the price approaching a crucial area of support around $1317-$1320. That zone marks both a notable swing low and the 76.4% retracement of the wider move.

That looks like an interesting zone for long positions, with a break below $1307 required to negate the bullish outlook that was determined by the uptrend in place over the past two months.

Brent wedge breakdown slowing

Brent has been turning lower this week, since breaking out of a rising wedge on Monday. There is a strong chance that any subsequent downside would simply be a retracement before we move higher once again.

However, we could still see further downside over the short term, with a break above $65.32 required to negate this short-term bearish trend.

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