Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% 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.

Technical analysis: key levels for gold and crude

Both gold and Brent have been showing signs of weakness after recent gains. However, while gold looks likely to see further weakness, Brent remains above a key support level, for now.

Gold looks set for further downside

Gold has been selling off heavily this week, with the price losing $31 since the Tuesday high. Given the fact that the last two sell-offs from the $1357-1366 resistance zone brought about a move into the $1310 region, there is a good chance we will see further downside to come.

That being said, we are unlikely to see that move come in a straight line, and thus look out for a potential retracement before we turn lower again. The near-term level to watch is the $1328 peak set earlier this morning, where an hourly close above there would provide a signal that this weakness may be challenged in the near term. Until that happens, further downside is still the likeliest event.

Brent continues to struggle with $70 hurdle

Brent remains stuck below the $70.00 mark, with yesterday’s rise in US inventories failing to help things.

We need to see an hourly close below $68.22 to provide a more bearish short-term view. On the flip-side, we would need the price to rally through the key $70.00-$70.85 resistance zone to provide a bullish continuation signal. 

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 writer