Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% 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. 71% 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.

Technical analysis: key levels for gold and crude

Crude tumbles out of a two-month range, following a big rise in US inventories, while gold keeps falling, albeit at a slower pace.

IG Analyst

Publication date : 2017-03-09T09:10:34+0000

Gold bars

Source: Bloomberg

Gold continues to tumble

Gold drifted lower throughout yesterday and overnight, following the move below the crucial $1216-$1220 support zone.

This market has been remarkably consistent, yet with the key $1200 level coming into view, there could be some form of reaction in that area. In any case, as long as we continue to create lower highs and lower lows, a bearish outlook remains in place.

Gold chart

Gold chart

Gold chart

Brent drops to a new 2017 low

Brent tumbled through a host of support levels yesterday, following another big build on the inventories number. Crucially, we have now seen a move below the $53.83 support level, which underpinned the past two months of the price action. As such, it looks as though a top is in place for the moment, with the further downside likely.

The lack of any near-term swing high means creating a decent trade can be difficult. An hourly close back below yesterday’s low of $53.00 would provide a sell signal, partially negating the chance of a big bounce to recover some of yesterday’s sell-off. That also has the benefit of providing a new swing high, upon which to base our stops. Until then, further gains certainly are a possibility given yesterday’s incredible moves.

Oil Brent crude chart

Oil Brent crude chart

Oil---Brent-Crude-(DFB)090317_Lg

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