All trading involves risk. Losses can exceed deposits.
Over 40 years’ heritage
Over 185,000 clients worldwide
Over 15,000 markets

Technical analysis: key levels for gold and crude

Gold showing signs of a resurgence, with a short-term period of upside providing a potential buying opportunity. Meanwhile, Brent prices head back into a crucial resistance zone.

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

Gold showing signs of a resurgence

Gold is breaking higher this morning, following on from the sell-off seen earlier in the week. The difficulty here is that we are at the whim of Mr Kim Jong-Un and should we see another North Korean nuclear test, it would spark a rise in gold. All things remaining equal, this market looks like it could be retracing a part of the $1358-$1322 sell-off before we move lower once more.

However, given the bullish bias caused by the possibility of another test, the bullish short-term picture looks like a good bet on an intraday basis. It seems like we could be retracing towards the $1345-$1350 mark, and given the potential for a positive surprise on top of that, it makes sense to take longs. As such, a short-term upside into $1345 seem attractive, where a break below $1328 would negate that bullish short-term view.

Gold chart

Brent heading back into key resistance zone

Brent managed to break higher from the short-term period of weakness this week, with the creation of higher highs and higher lows on an intraday basis bringing us back into a crucial resistance zone. The ability to break through $55.00 would provide a bullish medium/long-term view for Brent.

Until then, there is still a chance we could see this market turn lower from this key resistance zone once more. 

Brent 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

  • 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.

  • What is a trading plan?

    A trading plan is a tool that you can use to clearly define your trading objectives and help you achieve them. In this module we explain how to construct your personal plan, and how to implement it.

  • Introduction to CFDs

    An introduction to CFD (Contracts for Difference) trading and how it works, featuring examples and reasons to trade CFDs. We also discuss the related pricing and funding requirements.