Technical analysis: key levels for gold and crude

Commodities go their own way, with gold rallying heavily while Brent sharply deteriorating. Recent trends point towards this continuing to be the case.

Source: Bloomberg

Gold broke out sharply to the upside yesterday, working out particularly well for our bullish view. This marks the completion of the symmetrical triangle, and given that it has taken place in the direction of the wider prevailing trend, further gains seem likely.

As such, further gains are expected, with an hourly close below $1336 required to negate this view.

Brent continues to sell-off
Brent has once more sold-off heavily yesterday, with the failure to break back above $45.30 proving very telling as the FOMC helped lead another sharp decline in price.

There are no signs that this will subside for now and as such further losses are likely. In particular, an hourly close below yesterday’s low of $43.71 would be required to signal another leg lower.

Key resistance levels of note are $44.13 and $44.50, while we would need to see a break back above $45.30 to negate this downtrend. 

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

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.