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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

The commodity rally goes on, marking a substantial about-face in sentiment and price action compared to last week. 

Gold bars
Source: Bloomberg

Gold getting strong

Despite finishing off the highs yesterday gold has continued to climb. It is still consolidating its hold above $1230, but a firm move above $1235 should open the way to $1240 and $1246.

Dips along the way should be viewed as buying opportunities, as long as the price holds above $1220. The news that hedge funds cut their long exposure by a record amount should not be seen as bearish, indeed it indicates a shift in positioning that should be viewed as bullish, as institutions begin buying gold once again.

Brent pushing up  

Having pushed through the 200-day simple moving average (SMA) at $51.96, Brent is now testing the 50-day SMA ($52.44) and the rising trendline off the November low.

The next region to watch on the daily chart seems to be $53.80, while a steady retracement towards $51.60 or even $50.50 would provide a fresh buying opportunity. 

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