CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Technical analysis: key levels for gold and crude

Both gold and Brent have retraced into the 76.4% Fibonacci level, yet with uptrends in play, we could see a bullish rebound before long.

IG Analyst

Publication date : 2018-01-30T09:46:02+0000

Video poster image

Gold turning higher from 76.4% retracement

Gold has started turning higher, following a deep 76.4% retracement.

The wider uptrend points towards a possible bullish revival from here, where the oversold stochastic and a potential reversal in direction on the moving average convergence divergence (MACD) histogram all add to the notion that we could turn higher from here. With that in mind, a bullish outlook remains in play, unless the price falls back below $1324 support.

Gold chart

Gold chart

Gold chart

Trade idea: long gold 30/01/18

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Brent could be set for bullish reversal after recent retracement

Brent has sold off into the 76.4% retracement overnight, with the wider uptrend raising the chances of a bullish move higher from here.

The depth of this retracement means we are looking at a strong bullish risk-to-reward profile, where a break below $68.03 would be required, to negate any bullish short-term sentiment.

Brent chart

Brent chart

Brent chart

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