Technical analysis: key levels for gold and crude

Gold and Brent have enjoyed significant gains of late. But, although there could be short-term pullbacks in play, further upside seems likely.

Gold gradually retracing lower

Gold is slowly channeling lower, following a blockbuster rise over the past three weeks.

This current move lower is unlikely to last; for a bullish view to come back into play, we would be looking for a break above the recent swing high of $1318. Until then, there is a good chance we could see another short-term move lower from here.

Gold price chart

Brent rallies despite wedge breakdown

Brent managed to rally sharply yesterday, despite the initial signs of short-term weakness, after the price fell from a wedge pattern.

With the price starting to turn lower, there is a chance we could start to see a retracement of the $66.17-$68.15 move. As such, short-term downside would be seen as a buying opportunity, where the price would have to break below $66.17 to negate the bullish view.

Oil price chart

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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.