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Bearish Engulfing Reversal

GOLD TECHS
  • RES 4: $2075.5 - High Aug 7 and major resistance
  • RES 3: $2030.0 - High Aug 11
  • RES 2: $2025.4 - 76.4% retracement of the Aug 7 - 12 sell-off
  • RES 1: $2015.7 - High Aug 18 and key intraday resistance
  • PRICE: $1944.9 @ 06:31 BST Aug 20
  • SUP 1: $1924.9 - Low Aug 19
  • SUP 2: $1912.9 - Low Aug 13
  • SUP 3: $1863.2 - Low Aug 12 and the bear trigger
  • SUP 4: $1841.2 - Low Jul 22

Gold sold off sharply yesterday signalling the end of the recent corrective recovery. Importantly, resistance at $2030.0 remains intact. Aug 11 high. Furthermore, yesterday's sell-off in pattern terms is a bearish engulfing candle pattern and signals scope for a deeper sell-off. If correct, this has exposed key support at $1863.2, Aug 12 low. On the upside, the initial key resistance resides at 2015.7, Aug 18 high. Bearish!

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