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Envelope Support Contains Break Lower

GOLD TECHS
  • RES 4: $1998.4 - High Apr 18, 2022
  • RES 3: $1982.0 - High Apr 19, 2022
  • RES 2: $1963.0 - 76.4% retracement of the Mar - Sep 2022 bear leg
  • RES 1: $1892.1/1959.7 - 20-day EMA / High Feb 2
  • PRICE: $1846.5 @ 08:03 GMT Feb 20
  • SUP 1: $1819.0 - Low Feb 17
  • SUP 2: $1817.5 - 2.0% 10-dma envelope
  • SUP 3: $1797.1 - Low Dec 28
  • SUP 4: $1787.3 - 50.0% retracement of the Sep 28 - Feb 2 bull leg

Trend conditions in Gold are bearish for now, despite the late recovery into the Friday close. This follows the strong sell-off on Feb 2 / 3 as well as the break of support at the 50-day EMA early Wednesday. A clear break here would strengthen a bearish case and suggest scope for a deeper pullback. Vol band support (the 2.0% 10-dma envelope), successfully contained prices Friday, keeping the focus on the level this week.

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