Technical analysis: key levels for gold and crude

Gold looks set to continue its recent gains, while Brent is attempting to experience a more bullish phase following Wednesday’s rally within a long standing downtrend.

Oil rig Source: Bloomberg

Gold continues to trend upwards

Gold has been remarkably consistent of late, with the recent rally taking us into a six-month high today. We have seen precious few signs to say that this is about to end, with a drop below the most recent swing low of $1264 required to negate the recent intraday element of this uptrend.

Beyond that we can start looking at wider elements of the trend, yet if we remain above $1264, a bullish short-term outlook remains in play.

Gold chart

Gold chart

Brent drifting lower after recent rebound

Brent crude managed to rebound sharply on Wednesday, providing us with an intraday higher high. This points towards a potential bullish phase coming into play as we retrace some of the wider $63.75-$50.26 move.

Watch out for trendline and Fibonacci resistance if we do see further upside. Only with a break below $50.26 would we look likely to resume the wider downtrend without any further upside.

Brent crude chart

Brent crude chart


IGA, may distribute information/research produced by its respective foreign affiliates 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.

Please see important Research Disclaimer.

See an opportunity to trade?

Go long or short on more than 16,000 markets with IG.

Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.