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Downtrend Intact

GOLD TECHS
  • RES 4: $1783.2 - High Aug 16
  • RES 3: $1765.5 - High Aug 25 and a key resistance
  • RES 2: $1742.0 - 20-day EMA
  • RES 1: $1726.6 - High Aug 31
  • PRICE: $1711.5 @ 07:18 BST Sep 5
  • SUP 1: $1681.0 - Low Jul 21 and the bear trigger
  • SUP 2: $1676.9 - Low Mar 8 2021
  • SUP 3: $1671.0 - Low Jun 5 2020
  • SUP 4: $1657.1 - 0.764 proj of the Jun 13 - Jul 21 - Aug 10 swing

Gold remains in a clear short-term downtrend and last week’s extension reinforces a bearish condition. Support at $1727.8, Aug 22 low has been breached to confirm a resumption of the bear cycle. The break lower paves the way for weakness towards $1681.0, the Jul 21 low and a key bear trigger. A break would confirm a resumption of the broader downtrend that started early March. Initial firm resistance is seen at $1742.0, the 20-day EMA.

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