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Technical analysis: key levels for gold and crude

Oil prices seem to be heading lower, as bullish momentum dries up. 

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.
Man inspecting oil barrels
Source: Bloomberg

Gold at risk of moving lower
Gold progress beyond the $1130 area has been absent over the past week. While the hourly uptrend is still holding, the risk is that the price begins to move lower, down towards support at $1120, and then potentially down to $1112, and the lows of last Friday.

The 200-day simple moving average ($1131) and then the monthly downtrend line stand in the way of any further gains, but if it is broken then the next target is $1137 and then $1145. 

Brent rally looks to have stalled
The failure to push on beyond $36 suggests that the Brent rally has stalled. The hourly uptrend still holds, so until the price moves back below $32.50 there is room for another bounce, but a daily close below $32.50 would ignite a move down to $31.22 and then $30.

WTI
The sharp drop yesterday in WTI suggests the sellers are back. While we may see a bounce back towards $31.50 on the intraday charts, it looks increasingly like the next move is lower, down towards $30.50 and then $29.68. The January low around $28 are lurking in the background. 

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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.