Technical analysis: key levels for gold and crude

Gold continues to consolidate as we await another leg lower, while WTI looks set to continue its downturn following a recent wedge breakout.

Gold moving back towards key support level

Gold is selling off once more this morning, with Tuesday’s rally bringing about a new lower high. The price has been turning lower since.

Watch for the ability to break below the $1211-$1214 support zone to signal the next leg lower for gold. With the attempted rebound proving short-lived, there is a growing feeling that there will be yet another move to the downside from here.

WTI breakdown looks set to continue

WTI has been selling off since the breakdown below the $68.02 support level, completing the fallout from the recent wedge.

The price has been moving lower since then, and this looks likely to continue apace from here. Any short-term upside would look likely to be a retracement before we move lower once more, with a rally through $70.00 required to negate this bearish view.

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