Technical analysis: key levels for gold and crude

Gold and Brent show signs of a short-term resurgence. However, will the recent downtrend remain intact for both markets?

Gold pullback looks like short-term retracement

Gold has managed to rebound from the crucial $1306 support level, with the creation of higher highs and higher lows pointing towards a possible extension of these recent gains.

With the price moving lower this morning, there is a chance we are seeing a retracement before we push higher once again. As such, watch out for Fibonacci and trendline support as potential buying opportunities. A break below $1311 would be required to negate the expectations of another move higher over the short term.

Will the Brent rally signal a bullish shift?

Brent has been selling off heavily over the past week, as it falls back from the long-term resistance zone between $69.23 and $70.00.

For this recent downtrend to continue, we need to see the continued creation of lower highs and lower lows. As such, a bearish outlook remains in play unless we see a rally up through $64.57. Should we see such a break, it is likely we would be looking at a retracement of the wider sell-off from $70.00.

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