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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 trading above a key head and shoulders breakdown level. Meanwhile, Brent crude is heading lower after hitting trendline resistance.

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Gold trading at key breakdown support level

Gold is seemingly forming a head and shoulders pattern in the wake of a rally into the 76.4% retracement level ($1228).

The break below $1220 would spark a bearish short-term view, with a projected head and shoulders target of $1208. However, that only comes with a break below $1220. Until then, there is a chance of a rebound from this support level.

Gold chart

WTI turning lower from trendline resistance

WTI has struck trendline resistance once again, following an attempt to regain ground following recent losses.

With that in mind, it looks likely we will see the market turn lower from here, with the continuation of lower highs and lower lows likely to persist. As such, a bearish outlook remains in play unless we see a break through $64.72.

WTI chart

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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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