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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 continues to gain ground, while Brent remains in a bearish mindset given the completion of a head and shoulders formation.

Oil drill tubes
Source: Bloomberg

Gold continues ascent within wedge

As expected, gold managed to break higher yesterday, with a new high created in the wake of a bounce from the four-hour 50-day simple moving average (SMA).

We are clearly moving lower for now, with the ascending trendline wedge support coming into play. A wedge is a bearish pattern, yet until we break to a new low (below $1259), the uptrend remains in play. 

Brent breaks below crucial support level

Brent fell below the $51.01 mark yesterday, completing a head and shoulders formation. This provides us with a renewed bearish view, meaning that the current bounce is likely to be fleeting and merely gives us a better shorting opportunity.

As such, a bearish view remains unless we see a push through $53.00.

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