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 turns lower once more, despite a sharp move higher, with Brent gaining after overnight losses.

Source: Bloomberg

Gold rally falls short at previous low

Gold saw a sharp appreciation yesterday, which fell short at the confluence of last Wednesday’s low and the 50% retracement. With the price moving lower overnight, a break back below $1223 would be required to signal that this recent downtrend is set to continue.

Should that occur, the $1216-$1220 zone represents the next major hurdle to overcome to the downside. Conversely, a break above the previous swing high (currently $1237) would provide a more bullish outlook.

Brent continues its recovery

Brent has continued to create new highs overnight, with price recovering from a major trendline support on Friday. The next hurdle to overcome is the 61.8% retracement ($56.29), which represents the highs of the week so far.

Until we break to a new lower low, this uptrend is expected to continue, in a bid to bring Brent back into the top of its long term range.

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