Skip to content

Important Notice: IG Markets South Africa will no longer provide Trading Accounts. This change does not affect existing International/offshore accounts. New applications will be supported by IG International, part of IG Group, via https://www.ig.com/en. Important Notice: IG Markets South Africa will no longer provide Trading Accounts. This change does not affect existing International/offshore accounts. New applications will be supported by IG International, part of IG Group, via https://www.ig.com/en.

Technical analysis: key levels for gold and crude

Gold is showing signs of a potential bullish reversal, while Brent prices are showing little signs of a rebound despite rumours of a major production cut from OPEC.

Oil rig
Source: Bloomberg

Gold turning higher from trendline and Fibonacci support

Gold is coming back into prominence following a fall into a support zone consisting of the 76.4% Fibonacci retracement and an ascending trendline.

The creation of higher highs and higher lows over the past three months points towards another leg upwards from here, with a wider bearish view coming into play with a drop below $1180.

Gold chart

Brent downtrend remains intact despite output cut talk

Brent has done little to respond to rumours of a 1.4 million barrels per day (bpd) cut from the Organisation of Petroleum Exporting Countries (OPEC) in a bid to counteract the recent weakness seen in oil prices. The downtrend remains intact, and it makes sense to expect more of the same until the price tells us otherwise.

With that in mind, keep an eye out for a potential next breakdown, with a rally through $72.00 required to negate this bearish outlook.

Brent chart

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

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.