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CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Technical analysis: key levels for gold and crude

Will the rebound we are seeing in gold and Brent continue apace, or simply falter back into downtrend?

Oil pump
Source: Bloomberg

Gold rallies back into Fibonacci resistance

Gold has managed to break back through the crucial $1214 resistance level this morning. The original break below that level seems to pave the way for further downside on a wider timeframe.

Whether we are going to see some form of a rebound before that next leg lower remains to be seen. For that to look likely, we would need to see a break back up through $1229. Until that happens, shorts look attractive from the 61.8%-76.4% retracement zone ($1220-$1223).

Brent regains ground, yet it isn’t out of the woods yet

Brent has been regaining ground this week, with the price rallying into the 61.8% Fibonacci retracement so far. Coming off the back of a short rally in late June and early July, there is a possibility that the rally is not over.

However, for that to come into play, we would need to see a break through $49.91 resistance. Until then, there is a good chance that we are seeing the May/June selling pressure come back into play. As such, watch out for a potential move lower from this region, where a break back below $46.20 would confirm that we are due to see a significant amount of further downside.

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