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

Gold seeks to carve out further gains amid a strong start to 2017. Meanwhile Brent begins to deteriorate once more, set within wider downtrend over the past fortnight.

Gold bars
Source: Bloomberg

Gold attempting to break higher once more

Gold has managed to break back above $1200 once more overnight, with price marginally creating a new 53-day high. However, despite this bullish move, we would need to see an hourly close above $1207 to provide a bullish signal.

There is still a risk of gold turning lower from this big resistance region and as such, a strong confirmation becomes important. Alternately, should we see an hourly close below $1188, then this would provide us with a more bearish near-term outlook.

Brent continues to weaken from Fibonacci resistance

Brent has continued to move lower, following last week’s move into the 76.4% resistance region. We are seeing price move lower, yet the creation of a falling wedge brings a potential warning sign. That being said, an hourly close below $55.50 would provide a strong sell signal for a continuation lower.

Alternately, we would need to see price break through $57.61 to negate the wider bearish view. 

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