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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Technical analysis: key levels for gold and crude

Gold is trying to bounce off the 50-day SMA, while oil is still unable to stage a breakout. 

Gold bar
Source: Bloomberg

Gold pauses after steady drop

Gold has taken the price back to the 50-day simple moving average (SMA) at $1290 after the fall from the September high. Below here, the 100-day SMA at $1268 comes into play.

A bounce from the current level needs to move back above $1307, but overall it still looks like a new higher low has been created in the trend off the July lows.

WTI still stuck below trendline

No change has been seen in the overall outlook here so far for WTI. The price continues to hit its head against the February downtrend, and any breakout requires a daily close above $51.

Meanwhile, a turn below $49.40 would suggest that a bigger drop is at hand, with further support possible at $47.40.

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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.

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