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Double Bottom Reversal

GOLD TECHS
  • RES 4: $1816.0 - High Feb 23
  • RES 3: $1805.7 - High Feb 25
  • RES 2: $1784.8 - 38.2% retracement of the Jan 6 - Mar 8 sell-off
  • RES 1: $1769.7 - High Apr 15
  • PRICE: $1764.3 @ 07:11 BST Apr 16
  • SUP 1: $1721.4 - Low Apr 5
  • SUP 2: $1705.9 - Low Apr 1
  • SUP 3: $1676.9 - Low Mar 8 and the bear trigger
  • SUP 4: $1671.0 - Low Jun 5, 2020

Gold rallied yesterday signalling a resumption of recent strength. The yellow metal has cleared resistance at $1758.8, Apr 8 high and is trading above the 50-day EMA. The break higher confirms a double bottom reversal pattern that has formed since the Mr 8 low. Attention turns to $1784.8, a retracement level. On the downside, key short-term support has been defined at $1721.4, Apr 5 low. A break would be bearish.

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