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Technical analysis: key levels for gold and crude

Fresh multi-year lows today in crude confirm the bears are in control, while gold has touched $1100 for the first time since early November.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Oil barrels
Source: Bloomberg

Gold continues its climb
Unsurprisingly gold continues its ascent, moving in a straight line yesterday and hitting $1100 in early trade today. The 50-hour simple moving average ($1084) provided good support early on Wednesday, so a dip today towards this level could provide another buying opportunity.

The daily relative strength index (RSI) and stochastics are beginning to look overextended, but a continued move higher heads towards $1108 and then $1120.

Brent still oversold
The break of $36 earlier in the week continues to produce one of the most dramatic moves in Brent crude in months. On the daily chart the bear case is quite clear-cut, but with intraday RSI and stochastic indicators heavily oversold it might be better to wait for a bounce back towards $33.44 or even $35. However, it looks like $30 is now just a matter of 'when', not 'if'. 

WTI testing 2009’s lows
The 2009 lows here are being tested this morning, with a look at the monthly chart suggesting the next big area of support will be $25. On the daily chart $30.62 looks to be the next stop. As with Brent, intraday charts are heavily oversold, but short-term bounces back towards $33.20 or above will be seen as selling opportunities. 

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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.