Technical analysis: key levels for gold and crude

Gold and Brent fall back after recent periods of upside. However, with wider bullish trends in play, this period of weakness could provide us with a buying opportunity.

Gold pullback could take us into trendline support

Gold is looking to follow up on the pullback seen in the second half of last week, with price moving towards the near-term swing low of $1321.

While a break below that level would provide a bearish signal, this could be a case of posting an ABC style retracement, with the ascending trendline coming into play once more. As such, while we could see further downside for the short term, we would need to see a break below $1303 to truly negate the bullish outlook for gold.

Brent finding support around trendline confluence

Brent sold off sharply from the $68.00 region yesterday, coming off the back of a period of upside which took the price into a three-month high. The break through $63.75 last week provided an inverse head and shoulders confirmation, with the price following through for much of last week.

However, with the price having pulled back, this looks like an opportunity to get long rather than something to worry about. With the confluence of two ascending trendlines in play, it makes sense to look for a resurgence from here, with a break through $65.18 providing an intraday bullish signal. Given we are moving into a more bullish phase for both the stochastic and MACD histogram, it looks like momentum is also turning in the favour of the bulls.

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.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. 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, and 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.

Please see important Research Disclaimer.

Trade on commodities

Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1

  • Wide range of popular and niche metals, energies and softs
  • Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
  • View continuous charting, backdated for up to five years

1In the case of all DFBs, there is a fixed expiry at some point in the future.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

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.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

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.