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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

Commodity prices are looking to bounce after a difficult week, although there is much work to be done to reverse the current bearish picture.

Gold figure
Source: Bloomberg

Gold - will it hold the $1225?

It has not been fun for gold bull over the past month – the 5.4% fall since mid-April mirrors, the February/March pullback. If the price can hold the $1225 low from last week then we could see a push back to $1240 and then the 200-day simple moving average (SMA) at $1249.

The latter would put the price back above the December rising trendline, and potentially suggest a move back to $1300. A drop back below $1225 would open the way to the 100-day SMA at $1222 and then down to the $1195 March low.

WTI may see more gains 

Friday’s price action reinforces the idea that a bounce is in the offing for WTI. A fall to $44 brought out the buyers, and, while the price is falling back from $47.12, the overnight high, more gains could be on the way.

The next levels to watch are $49.40 and then $51.40 on the upside. A failure to move on above $47 would suggest a move back to $45 and back down to $44. 

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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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