Technical analysis: key levels for gold and crude

Brent drops to a new 2017 low

Brent tumbled through a host of support levels yesterday, following another big build on the inventories number. Crucially, we have now seen a move below the $53.83 support level, which underpinned the past two months of the price action. As such, it looks as though a top is in place for the moment, with the further downside likely.

The lack of any near-term swing high means creating a decent trade can be difficult. An hourly close back below yesterday’s low of $53.00 would provide a sell signal, partially negating the chance of a big bounce to recover some of yesterday’s sell-off. That also has the benefit of providing a new swing high, upon which to base our stops. Until then, further gains certainly are a possibility given yesterday’s incredible moves.