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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

Gold and Brent experience short term gains amid wider downtrends. Yet how long will this last?

Oil rig
Source: Bloomberg

Gold’s pullback could bring further upside

Gold has been trading higher in a consistent manner this week, coming off the back of Friday’s break through the key $1229 resistance level.

Given the bullish short-term view, this current retracement looks like a possible buying opportunity. The preferred area for longs comes at $1234-1235 given the risk-to-reward implications. A break back below $1233 would negate this bullish short-term outlook.

Brent begins to turn higher once more

Early losses appear to be abating for Brent, with the price having failed to break below the notable $48.27 support level. Ultimately, we would need to see a break back below $47.30 to bring about a more bearish picture once again.

However, in the short term, it is worth watching the ability to maintain the price above $48.27 as this could also be used as a swing low, above which the market could turn back into the short-term uptrend. 

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