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Technical analysis: key levels for gold and crude

Gold and Brent have started to come under pressure following recent strength. With gold hitting trendline support and Brent yet to break a key swing low, the bearish reversal picture is yet to be confirmed.

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Gold continues to turn lower after recent ascent

Gold has been pulling back from the key $1357 resistance area, with lower highs and lower lows coming into play.

The price has currently respected trendline support, which needs to be cleared out for further downside. However, in the near term, there is a bearish view in play as long as we do not see the price break back above $1347.

Brent faltering at $70.00 resistance

Brent is faltering at the crucial $70.00 mark once again this week, with the recent uptrend slowing, now that we have reached that crucial level. Above that, we have the $70.85 peak from late January to contend with.

To the downside, we need to see a break below $68.22 to bring a more bearish outlook. With that in mind, the price needs to break through $70.85 (bullish) or $68.22 (bearish) to bring a signal of where we go from here.

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.

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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.