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Bear Channel Support Remains Exposed

  • 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: $1796.8 @ 07:11 GMT Jan 28
  • SUP 1: $/1749.9/1791.9 - Channel base from Aug 9 low / Low Jan 27
  • SUP 2: $1782.8 - Low Jan 7
  • SUP 3: $1753.7 - Low Dec 15 and a key support
  • SUP 4: $1746.0 - Low Oct 6

The rally in gold has stalled. The sharp sell-off once again exposes support at the base of the bull channel that intersects at $1794.9 - the channel is drawn off the Aug 9 low. A clear break of the channel base would highlight a bearish threat and a more significant reversal. This would signal potential for weakness towards $1782.8, the Jan 7 low. For bulls, a break of $1853.9, Jan 25 high is required to reinstate the recent bull theme.

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