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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 begins to show signs of weakness, following a recent bullish reversal. Meanwhile, Brent looks set for further upside after recent consolidation. 

Oil barrels
Source: Bloomberg

Gold breaks below trendline support

Gold has broken below a notable support level this morning. There has been a rising channel being negated with a move below $1291, which points towards further downside. With gold showing some signs of bottoming out last week, we could be seeing the beginning of a retracement from the $1261 low.

As such, keep an eye out for the Fibonacci retracements between $1271 and $1283, as possible bullish reversal areas. However, while we could still see further downside, there is a strong chance that this weakness is a retracement, before we move higher once more. 

Brent pushing higher towards key resistance

Brent is turning higher once more this morning, following on from a retracement lower yesterday. The recent double bottom formation pointed towards a continuation of the wider uptrend following the recent retracement.

With that in mind, as long as we do not see the price break below $55.82, then this current uptrend is intact. 

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