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Bullish Engulfing Candle

GOLD TECHS
  • RES 4: $1805.7 - High Feb 25
  • RES 3: $1760.7/75.9 - Low Feb 19 / High Feb 26
  • RES 2: $1756.1 - 20-day EMA
  • RES 1: $1723.3 - Low Mar 4
  • PRICE: $1714.7 @ 07:07 GMT Mar 10
  • SUP 1: $1676.9 - Low Mar 8 and the bear trigger
  • SUP 2: $1671.0 - Low Jun 5, 2020
  • SUP 3: $1659.6 - Low Apr 21, 2020
  • SUP 4: $1640.9 - Low Apr 8, 2020

Gold remains in a clear downtrend however yesterday's price action suggests the yellow metal may have found a base. In pattern terms, the pattern is a bullish engulfing candle. If correct, it signals scope for a short-term correction that would allow the current oversold momentum reading to unwind. Key support has been defined at $1676.9, Monday's low. A climb would open the 20-day EMA at $1756.1. A break of $1676.9 resumes the downtrend instead.

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