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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Technical analysis: key levels for gold and crude

Gold’s rally from the Friday lows has run out of steam, while oil remains becalmed in the middle of its recent range. 

Oil barrels
Source: Bloomberg

Gold could test $1174

Gold bears were afforded an excellent chance to short the metal, as the Friday rally hit $1195 and then fell back again.

This kind of price action would seem to indicate that a test of $1174 and then $1157 is likely, assuming that the sellers can break Friday’s low at $1180. Buyers need to push the price back above $1195 to indicate that a rally is at hand.

Gold

WTI awaits breakout from range

The end of last week saw the $54 resistance hold once again, so it looks like we are due a move to $52.80 and then down to $52. For the time being the $52-$54 range continues to hold, so we have a clear set of levels against which to trade.

We will need to see a breakout from one of these for a new direction to establish itself for WTI.

WTI

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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