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 is moving into a crucial support zone, while the recent downturn seen in Brent could be on borrowed time.

Gold downturn brings market into key support zone

Gold has continued its decline, with the price approaching a crucial area of support around $1317-$1320. That zone marks both a notable swing low and the 76.4% retracement of the wider move.

That looks like an interesting zone for long positions, with a break below $1307 required to negate the bullish outlook that was determined by the uptrend in place over the past two months.

Brent wedge breakdown slowing

Brent has been turning lower this week, since breaking out of a rising wedge on Monday. There is a strong chance that any subsequent downside would simply be a retracement before we move higher once again.

However, we could still see further downside over the short term, with a break above $65.32 required to negate this short-term bearish trend.

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