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 begins to show signs of weakness, following a recent bullish reversal. Meanwhile, Brent looks set for further upside after recent consolidation. 

Oil barrels
Source: Bloomberg

Gold breaks below trendline support

Gold has broken below a notable support level this morning. There has been a rising channel being negated with a move below $1291, which points towards further downside. With gold showing some signs of bottoming out last week, we could be seeing the beginning of a retracement from the $1261 low.

As such, keep an eye out for the Fibonacci retracements between $1271 and $1283, as possible bullish reversal areas. However, while we could still see further downside, there is a strong chance that this weakness is a retracement, before we move higher once more. 

Brent pushing higher towards key resistance

Brent is turning higher once more this morning, following on from a retracement lower yesterday. The recent double bottom formation pointed towards a continuation of the wider uptrend following the recent retracement.

With that in mind, as long as we do not see the price break below $55.82, then this current uptrend is intact. 

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