Technical analysis: key levels for gold and crude

Gold starts to turn lower from key resistance, while Brent attempts to break higher once more.

Oil barrerls
Source: Bloomberg

Gold turning lower from resistance zone

Gold is turning lower this morning following a substantial rally overnight. This market has continuously failed to break through the $1357-$1358 resistance zone, and this looks like another case of that happening.

Essentially, it makes sense to look out for a potential move lower considering the proximity to that resistance zone. We are clearly consolidating and as such while we await a breakout, it is highly likely that we will continue to range.

Brent continues to push higher

Brent is pushing onwards once more, as we see an extension of an incredibly consistent rally. We are looking for a break and hourly close above yesterday’s high of $50.07 to provide a clue that this retracement is over.

Otherwise, look out for support around $49.49. Essentially it makes sense to look for further higher highs and higher lows and until that is negated, a bullish view remains in place. 

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 IGA 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.