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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 oil could not have had a more divergent week, and the stark difference looks set to persist. 

Gold
Source: Bloomberg

Gold shows no sign of rallying

Gold continues to see intraday selling, as each rally fizzles out. Indeed, the price has recorded a lower intraday high since Tuesday.

A move above $1261 would be a first step, and then above Monday’s high at $1272. This would suggest a bottom is in for now, at least within the context of the current downtrend from the April highs. Possible near-term areas of support are $1245 and then $1236.

WTI puts on yet more gains

The speed of the WTI rally has surprised many, but it confirms that the ‘path of least resistance’ for oil is still higher.

Short-term pullbacks intraday may find buyers, and even a broader dip towards $68.50 would still provide another possible entry point for longs. The next areas of possible resistance come in at $74.95 and then $77.28. 

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