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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 Brent continue their consolidation, with potential reversals taking their time to work themselves out.

Oil
Source: Bloomberg

Gold looks to be turning back onto bearish path

Gold is regaining ground this morning, following last week’s strong sell-off. With the price having moved into the 76.4% retracement of the June-July sell-off, it looks likely we are set for a period of downside.

This current rebound looks like a short-term move higher, with selling preferred, as long as we do not see a break back up above $1271. A move back into the $1265 region would look like an attractive selling opportunity considering trendline resistance.

Gold price chart

Brent continues to trade within triangle

Brent remains within a symmetrical triangle formation, with the price rallying into the top of the pattern this morning. This is certainly an area where we could see a market top, but the breakout from this pattern should give us more confidence of the directional bias.

With that in mind, an hourly close above $53.00, or below $51.38 would provide the key signs of where the price could go from here.

Brent price chart

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