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

Commodity divergence continues apace, with gold rallying and crude prices falling. As both look to get back on trend, it is a case of ‘the trend is your friend’.

Worker overlooking an oil refinery plant
Source: Bloomberg

Gold back to challenge resistance once more

Gold prices retraced a marginal amount overnight, with price turning higher once more this morning. With both Fibonacci (76.4%) and trendline resistance in close proximity, we need to see an hourly close above $1251 to provide confidence of further gains.

That said, be aware we are gradually moving towards the $1264 resistance level. That level will be crucial to the outlook of gold, where a break through it would provide a medium-term bullish view to match the short-term outlook.

Brent gains unlikely to last

Brent managed to gain some ground yesterday despite the build in US crude inventories. That said, the brief break below $50.32 says a lot, with the downtrend remaining intact.

The wider, longer-term view is one of an uptrend, where a break below $44.11 would be required to negate this. Until then, it looks likely there is further room for downside, with the current rally looking like a selling opportunity. As long as we do not break $53.31, a bearish outlook remains preferable.

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