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Technical analysis: key levels for gold and crude

Gold’s remarkable run continues, while oil prices have turned lower once more. 

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 rig
Source: Bloomberg

Gold
A weaker dollar and increased risk aversion have done wonders for gold, which has enjoyed a nearly straight line move since 3 June. A close above $1305 today would ignite fresh bullish momentum, with the next area to watch being $1350.

If the forward movement fails and the price falls back below $1300 we could see a rapid drop in the direction of $1280 and then the 50-day simple moving average at $1254. 

WTI
WTI has finally dropped below the rising wedge that has been in place since December last year. A further move downwards heads towards $46.19 and then $42.60, while a recovery back inside the rising wedge would encounter resistance at $48.50, and then on to $49.30. 

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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.