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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 turns lower after recent gains, with the Brent decline also reversing after shift in risk appetite.

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Gold breakdown could drive further losses

Gold continues to trade within a multi-month range, with yesterday’s early gains fading as equities rallied.

The drop below $1328 points towards the potential of further losses. Ultimately, this is a particularly choppy period given the influence of fundamental factors. However, look out for the potential of further downside, with $1321 being the near-term support. It makes sense to look for trades around the extremes of the recent $1306-$1360 range.

Brent rallies back into key resistance

Brent has managed to rally back into the $68.22 resistance level, erasing all of yesterday’s losses.

This level represents the Tuesday peak, alongside the neckline of a head and shoulders formation. With that in mind, watch for a potential move lower from here. We would need to see the price rally up through $70.00 to start looking bullish once more. Until then, with the stochastic overbought and turning lower, there is a good chance of a bearish turn before long.

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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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