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

Both Gold and Brent confound the potential for a rebound, with both markets moving lower. 

Gold bars
Source: Bloomberg

Gold rally proves short-lived

Gold spiked higher yesterday, with a rebound into the 61.8% region. However, this looks to have been swiftly negated with price breaking back into the key support level of $1259.

That support zone will be crucial going forward as it represents a head and shoulders neckline. As such, watch out for a strong break of $1259 as a precursor to further losses. Conversely, we would need to break back through $1281 to become bullish once more.

Brent seeking to retrace following sell-off

Brent sold off once more yesterday, following a period of consolidation earlier in the week. We are seeing initial signs of strength coming back into play currently, which points towards another retracement.

With that in mind, keep an eye out for the Fibonacci levels as potential selling areas. However for the moment it seems likely we will see some short-term upside as we retrace some of yesterday’s sell-off.

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