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Technical analysis: key levels for gold and crude

Oil looks to be putting in a higher low, while gold has enjoyed what could be a short-term rebound. 

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Gold bounces from support

There has been strong buying for gold around the $1214 level so far in the past 24 hours.

A rally from here would be normal within the context of a downtrend, but it will have to move above $1265 to escape creating a new lower high. Fresh declines bring the $1205 level into play.

Gold chart

WTI rebounds

From the looks of the price chart it seems like WTI has created a new higher low, bouncing back above $68.00 and gaining momentum.

Further gains will target $72.88 and higher. A close below $66.30 would be a bearish development and raise the prospect of a move down to $63.40.

WTI chart

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This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.