All trading involves risk. Losses can exceed deposits.
40-year heritage
152,600 clients worldwide
15,000 markets to trade

Technical analysis: key levels for gold and crude

Gold’s rally may be pausing for breath, while oil has recovered its losses and is looking to push higher. 

All trading involves risk. Losses can exceed deposits.
Gold bars
Source: Bloomberg

Gold to have a short stop on the way up?

Gold longs have done well over the past week, but a pause would now be entirely plausible. The price has neared resistance at $1264, where the first part of the post-December rally peaked on 27 February.

A drop back from this level could also provide a more meaningful retracement, which has been lacking over the past 48 hours. As long as $1240 holds the rally is intact, while further upside targets above $1264 lie at $1270, $1276 and then on to $1300.

Gold price chart

Brent getting bullish

Yesterday’s surge put the fight back into the Brent, reversing Tuesday’s losses. Now the price needs to push above $52.50, the area above which gains have proved fleeting since the beginning of the week.

Above here the price will target $53.82. Yesterday’s dip to $51.50 brought out the buyers, so similar instances should be viewed as further buying opportunities. The bullish outlook is only seriously threatened if we see a drop back below $50. 

Brent price chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Education

  • Trading psychology

    Psychology is a key element of financial trading, and how you perceive and react to your trading can have a major impact on your success. In this module we go through some elements of trading psychology and identify a few common mistakes to watch out for.

  • Types of ETP

    Find out how exchange traded products (ETPs) combine the best qualities of various investment vehicles. Learn about the different types of ETPs and the diverse range of markets you can trade on.

  • Ways to trade forex

    Discover how the world’s largest and most liquid financial market operates. We explain how international currencies are traded and give you the key facts you need to know before you enter this popular market.