Technical analysis: key levels for gold and crude

Brent crude has bounced off its rising trend, while gold has stalled at $1235 but is already finding support. 

Mining
Source: Bloomberg

Gold still has the momentum

A swift drop from $1235 has already been met with buying, confirming that there is still plenty of momentum behind this move for gold.

Nonetheless, we need to see $1235 recovered to clear the way to the $1260 zone. A failure to hold $1225 would be worrying for bulls, although additional support is possible around $1220.

Brent eyeing a move higher

The Brent sell-off last week ran straight into the 200-day simple moving average at $51.45 and the rising trendline off the January low. These held, and now we see signs of a move higher.

Yesterday the hourly chart saw a dip below $51.50, but buyers came back and pushed the price back above $52. A new short-term higher low has been created, so now the price has to push above the $52.72 zone. A daily close below the March low of $50.34 would likely negate this outlook. 

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 analysts

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.