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

Technical analysis: key levels for gold and crude

WTI broke its downtrend in spectacular fashion yesterday, drastically altering the outlook. Meanwhile, gold looks to have more downside to come.

Oil
Source: Bloomberg

Gold ebbs despite North Korea news

Despite the spike higher yesterday after the North Korea news, gold looks at risk of creating a lower high, with a turn lower targeting $1290 and down to $1264.

It needs a move back above last week’s high of $1316 to break the sequence of downward moves. In this case, we would look for a move to $1340 in the short term. For now, however, the downside looks to have the upper hand.

Gold price chart

WTI in hands of the bulls for now

A decisive breakout for WTI yesterday looks to have settled the argument in favour of the bulls. The price targets on the upside are now $54.05 and $55.00.

A retracement could well occur in the short term but, with the downtrend off the February highs smashed, dips should be viewed as buying opportunities. 

Oil price chart

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