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 shows tentative signs of a resurgence following a move into trendline support. Meanwhile, the descent in Brent begins to slow, bringing a chance of a break from the current downtrend.

Oil pump
Source: Bloomberg

Gold regaining ground from trendline support zone

Gold has been recapturing ground following a fall into the confluence of two trendlines around $1267. Yesterday saw a move lower, providing us with a near-term swing high ($1282) that needs to be broken to give us a signal that we could be in for a more protracted period of upside in gold.

With that in mind, watch for either a break below $1267, or above $1282 to provide the signal of where we are likely to go from here. 

Brent weakness could be coming to an end

Brent has been selling off from the crucial $58.48 level this week, in a reversal from a long-term historical high. With that in mind we have been trying to decipher how long this downside could last. We are finally seeing some signs that this period of weakness could be over, with the descent slowing over the past 24 hours.

Should we see a break higher, an hourly close above $56.35 would signal a bullish shift for Brent. That being said, we do continue to see lower highs and lows, which bring into play the potential for a move lower from trendline resistance now. As such, the downtrend remains intact for now.

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