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Technical analysis: key levels for gold and crude

Crude sell-off brings us to a crucial crossroads, while gold gains ground amid stock sell-off.

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 plant
Source: Bloomberg

Gold gains amid risk-off sentiment
Just when you thought gold was dead and buried, it has seen life breathed back into it with the widespread selling that has dominated the indices.

The continued upside is tied to weakness in indices and thus it is worth watching both markets if trading gold. The key here is that we remain within a downtrend and thus a close above $1223 would be required for a bullish view to come back into play.

Until then, the 76.4% retracement is the most important resistance point to be watching in the near term.

Brent at crucial support level
Comments from the UAE oil minister last night proved to be the undoing of Brent after it hit $50.89 resistance. The subsequent pullback has brought us to a crossroads.

A break below $49.27 would mean that the creation of higher highs and higher lows have been negated and could pave the way for a sharp move lower. However, until we do see that move, the uptrend remains intact. 

WTI crude at decisive crossroads
The price for WTI is similarly at a crucial fork in the road, where the failure to create a new high above $50.28 is now bringing the potential for a new low.

A break through $48.73 would complete a double-top formation which if completed would provide a projected target of $47.26. With that in mind, we are likely to see a strong move in either direction from this crucial support level. 

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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.