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Bearish Threat Still Present Despite Bounce

GOLD TECHS


  • RES 4: $2030.0 - High Aug 11
  • RES 3: $2025.4 - 76.4% retracement of the Aug 7 - 12 sell-off
  • RES 2: $2015.7 - High Aug 18 and key intraday resistance
  • RES 1: $1961.9 - High Aug 21
  • PRICE: $1941.5 @ 06:38 BST Aug 27
  • SUP 1: $1902.9 - Low Aug 26
  • SUP 2: $1888.6 - 50-day EMA
  • SUP 3: $1863.2 - Low Aug 12 and the bear trigger
  • SUP 4: $1841.2 - Low Jul 22

Gold traded higher yesterday. Despite this move, the yellow metal remains vulnerable. The sell-off on Aug 19 signalled the end of the recent correction. Importantly, resistance at $2030.0, Aug 11 high also remained intact last week. The Aug 19 sell-off in pattern terms is a bearish engulfing candle and suggests scope for a deeper sell-off. If correct, this has exposed key support at $1863.2, Aug 12 low. The initial key resistance is at 2015.7, Aug 18 high.

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