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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.

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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.

Gold chart

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.

WTI chart

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