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 heading higher, following on from a fall into Fibonacci and trendline support. Meanwhile, Brent looks set for further downside after a meagre rebound.

Video poster image

Gold continues to regain ground from key support

Gold is gradually moving higher, following on from a retracement into trendline and Fibonacci support.

The question here is whether we are going to see another rally into the $1240 region, or else post another lower low. That should be partially answered by the response (or lack thereof) at Fibonacci levels. Thus far we have done nothing to show that this is a retracement, yet with the 76.4% Fibonacci level up ahead, the response at that $1227 price should tell us a lot about whether we continue to rise or not.

Brent looks set for another leg lower

Brent has shown little appetite to rebound, despite rumours of an impending output deal headed up by Saudi Arabia.

The rally into the 50% retracement has since run out of steam, with the pair breaking lower. Watch for a break below $65.46 to add greater confidence to this bearish outlook. However, whether we sell off immediately, or rebound for a deeper retracement, a bearish outlook is in play unless we rally through $71.93.

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