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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’s rally is on the cusp of a major breakout, while oil could be poised for a reversal. 

Gold bars
Source: Bloomberg

Gold pushing higher

Gold has pushed above the downtrend line off the July highs, so now we see if it can hold this level. A close below the trendline, back below $1265, coupled with overextended stochastics, could mark a bearish development, with a drop back to $1250 or lower possible.

 If $1265 holds then we look for a push to $1280 and then $1295. 

WTI – a close above the 200-day SMA on the way?

WTI is fighting hard to hold above the 200-day simple moving average (SMA) at $49.74, with a close above this line likely to signal a move in the direction of $50.52 and then $51.99.

A close below the 200-day SMA and then below $49.40 could suggest that a reversal is in play, creating a new lower high on the daily chart and increasing the possibility that the 2017 downtrend has resumed. 

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