Technical analysis: key levels for gold and crude
Gold looks set for another bearish turn following a recent head and shoulders formation. Meanwhile, Brent has reached a crucial support zone after Friday’s decline.
Gold head and shoulder points towards further downside
Gold has been rising over the past week, following on from a wider breakdown which saw the price fall below a crucial area of support.
That $1277-$1281 zone provides us with a head and shoulders formation evident on the daily time frame. With that in mind, the rally seen of late looks like another precursor to a bearish turn. As such, further upside could be likely on the near term, yet it looks like we will see the market break lower once more unless we see a rise through $1310. A fall below $1273 would signal a more bearish picture over the near term.
Brent falls into key support zone
Brent fell sharply on Friday after the US President Donald Trump announced his approach to the Organisation of the Petroleum Exporting Countries (OPEC) with a plea to push prices lower.
This drop has taken us into a support zone which encompasses both a cluster of previous lows and the ascending trendline dating back to December. With that in mind, it makes sense to look out for whether we can break below $70.53 to spark a new bearish phase for the market. Until then, we could see bullish move from here.
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.
