Technical analysis: key levels for gold and crude

Gold and Brent continue to move higher, yet with the latter hitting key resistance, we await a breakout for the next leg higher.

Gold
Source: Bloomberg

Gold pullback brings buying opportunity

Gold has retraced once more, set within a rising wedge formation in place throughout the week.

With the price moving into trendline support, having hit the 61.8% retracement, there is a strong chance that we will see the price begin to rise once more from here. The rising wedge formation itself is a bearish pattern, yet we would need to see the price break below $1262 to negate this recent uptrend. 

Brent begins to weaken from key resistance

Brent is starting to see some selling come into play this morning, following a strong move higher throughout the week thus far.

An hourly close above $64.29 would give a clue that we could be set to follow up last week’s bullish breakout, with a move back above $65.42. Until then, there is a chance we could see the price pull back somewhat following recent gains. 

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.

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.