Technical analysis: key levels for gold and crude

The gold rebound is slowing, with an early pullback bringing questions over its longevity. Meanwhile, Brent prices tumble into a key support level.

Oil
Source: Bloomberg

Gold consolidating after recent gains

Gold is drifting lower after failing to break through the $1240 peak set on Tuesday. This points towards a potential breakdown, if we move below $1225.

However, until that happens, we are likely to be forming another part of a slower bullish story, with further upside expected before long.

Brent declines into key support

Brent has dropped further following the news that Saudi Arabia is set to pump more oil going forward.

The bullish story is unravelling, and a break below $75.56 would provide greater confidence that this recent downtrend will have further to run. As such, watch for a four-hour close below $75.56 to provide a bearish continuation signal.

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