Technical analysis: key levels for gold and crude

Gold is trading above a key head and shoulders breakdown level. Meanwhile, Brent crude is heading lower after hitting trendline resistance.

Gold trading at key breakdown support level

Gold is seemingly forming a head and shoulders pattern in the wake of a rally into the 76.4% retracement level ($1228).

The break below $1220 would spark a bearish short-term view, with a projected head and shoulders target of $1208. However, that only comes with a break below $1220. Until then, there is a chance of a rebound from this support level.

WTI turning lower from trendline resistance

WTI has struck trendline resistance once again, following an attempt to regain ground following recent losses.

With that in mind, it looks likely we will see the market turn lower from here, with the continuation of lower highs and lower lows likely to persist. As such, a bearish outlook remains in play unless we see a break through $64.72.

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