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 and Brent continue to show signs of a short-term bearish reversal, following recent gains.

Gold bars
Source: Bloomberg

Gold drops out of uptrend

Gold has broken below key support levels this week, with both the first trendline, and then horizontal support being taken out. We are starting to see some strength coming back into play from here, with the $1326 support level key to further gains. As a result, a short-term move higher from here would not be surprising

However, unless we see North Korea announce another test, it looks like any rally would likely be short-term in nature - pointing towards further downside. As long as the price remains below $1358, further downside looks likely. 

Brent continues its descent from key resistance

Brent looks set for further downside, following a rally into the 76.4% retracement overnight. We are seeing the market turn lower once more from here. This points towards a likely continuation of the weakness we have seen since rallying into a crucial resistance zone, between trendline and $54.87 resistance.

A break above the $54.04 level would negate this current bearish short-term 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 writer