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Bear Channel Support Breached

  • RES 4: $1877.2 - High Nov 16 and key resistance
  • RES 3: $1871.0 - High Nov 18
  • RES 2: $1853.9 - High Jan 25 and the bull trigger
  • RES 1: $1822.2 - High Jan 27
  • PRICE: $1787.0 @ 07:13 GMT Jan 31
  • SUP 1: $1780.4 - Low Jan 28
  • SUP 2: $1775.7 - Low Dec 16
  • SUP 3: $1753.7 - Low Dec 15 and a key support
  • SUP 4: $1746.0 - Low Oct 6

The rally in gold stalled last week. The sharp sell-off has resulted in a break of base of its bull channel that intersects at $1795.8 - the channel is drawn off the Aug 9 low. The break lower highlights a bearish threat and a more significant reversal. This signals potential for weakness towards $1775.7, the Dec 16 low. For bulls, a break of $1853.9, Jan 25 high is required to reinstate the recent bull theme. Initial resistance is at $1822.2.

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