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Technical analysis: key levels for gold and crude

Brent shows signs of a reversal, which gold looks to trade into a crucial support trendline.

Gold bars
Source: Bloomberg

Gold heading lower from Fibonacci resistance

Gold is declining once more, following a rally into the 76.4% retracement yesterday. We have a major trendline of support to note to the downside, yet for now it looks like we could see another leg lower.

A break back up above $1259 would provide a more bullish outlook.

Brent continues to gain

Brent is showing further signs of a resurgence, with the price having rallied into the crucial $47.91 swing high. A break and hourly close through that level would provide greater confidence of further gains in the coming week.

To the downside, we would need to see a break back below $45.24 to negate the bullish view that is now in play.

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa 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. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.