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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Technical analysis: key levels for gold and crude

Gold remains determined to push higher, while oil could be poised for a new move lower. 

Mining
Source: Bloomberg

Gold recovering quickly

A small pullback yesterday has already been recovered, and now we wait to see if gold can push above the 200-day simple moving average (SMA) at $1257. Above here the targets remain $1271 and $1281.

Any failure to push on from current levels raises the risk of a move back to $1240 and then down to the 50-day SMA at $1231. 

WTI with obstacles ahead

Tuesday’s dip simply brought out yet more buyers for WTI, and now the price faces hurdles at the $52 level, with this resistance point amplified in strength by the presence of the 50- and 100-day SMAs ($51.87 & $51.83 respectively). A break above here puts the price back in the range that dominated from December until March, and would potentially suggest a return to the 2017 highs at $55.67.

A turn lower from here would still be encouraging for the bears, since it would mark a failure at $52, and also a new lower high. It would suggest a move back to the 200-day SMA at $49.11, and then down to the still intact rising trendline off the April lows. 

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