Technical analysis: key levels for gold and crude
Gold and Brent have sold off within wider periods of upside. However, with those bullish trends still intact, there is reason to believe this is a good buying opportunity.
Gold pullback brings buying opportunity
Gold has declined into trendline support this week, with consolidation giving way to another leg lower yesterday.
Interestingly, while we now create lower highs and lower lows, this is likely an ABC style retracement, with the bullish trend expected to come back into play from here. A break through $1330 adds greater confidence to such a bullish resurgence.
Brent falls back to trendline support
Brent has declined through the night, bringing the price back into trendline support. The wider uptrend has come under pressure after a sharp decline in Friday, yet with a confluence of trendline support coming into play on Tuesday morning, there is a good chance we are seeing another charge towards the recent high of $67.82.
Given the short-term pullback we have seen here, we are looking for trendline support to hold up as a precursor to further gains. With the stochastic oscillator heavily oversold, it could make sense to look for a break up through the 20 mark once again to provide a buy signal. Alternately, a break below the $65.41 level would signal a possible bearish phase taking hold once more.
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.
React to volatility on commodity markets
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
1In the case of all DFBs, there is a fixed expiry at some point in the future.
See opportunity on a commodity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a commodity?
Don’t miss your chance. Upgrade to a live account to take advantage.
- Analyse and deal seamlessly on fast, intuitive charts
- Get spreads from just 0.3 points on Spot Gold
- See and react to breaking news in-platform
See opportunity on a commodity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
