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Technical analysis: key levels for gold and crude

Gold looks set for further downside following the recent post-breakdown rebound. Meanwhile, Brent is turning lower but this may simply provide us with a better buying opportunity.

Joshua Mahony JMahony_IG
Senior Market Analyst, London

Publication date : 2018-10-01T10:21:50+0100

Gold looks set for another turn lower

Gold managed to break lower from a period of consolidation, with the fall below $1187 indicating what is likely the beginning of a more bearish phase.

Given the rebound we saw last week, it looks like we are heading back into that bearish theme now. With that in mind, as long as the price remains below $1194, then further downside looks likely to come into play.

Gold chart

Gold chart

Gold chart

Brent turning lower after recent ascent

Brent managed to surge higher last week, seeing a new four-month high for the market.

This looks likely to spark another move towards the upside before long. Thus, while there is a strong chance that we will see a pullback, this would be seen as a buying opportunity as long as the price does not fall below $80.50.

Brent chart

Brent chart

Brent 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.

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