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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’s Friday rally could soon be the target of fresh selling, while oil is trying to stabilise after heavy losses on Friday. 

Oil
Source: Bloomberg

Gold pullback change may happen

A turn could be at hand in the Gold pullback, as the commodity pushes briefly above the $1282 high from 4 October. A close above here could be the creation of a new higher high, with a move above $1290 confirming renewed bullish momentum. In this case, $1296 and then $1307 come into play.

A failure to move higher would raise the prospect of a move back to $1270, then down below $1260 and then to $1251.

WTI pullback has further to go

WTI’s heavy losses on Friday would seem to suggest that the pullback from the breakout has further to go.

While a small rebound from the oversold conditions of Friday is to be expected, any rally that is unable to move back above $51.50 remains a selling opportunity. Below $49.40 the price targets $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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