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Fails To Remain Below The Bull Channel Base

GOLD TECHS
  • RES 4: $1903.8 - High Jun 8
  • RES 3: $1877.2/93.0 High Nov 16 / Bull channel top
  • RES 2: $1815.6/49.1 - High Nov 26 / High Nov 22
  • RES 1: $1794.5 High Dec 1
  • PRICE: $1785.3 @ 07:18 GMT Dec 16
  • SUP 1: $1768.9 - Bull channel base drawn from the Aug 9 low
  • SUP 2: $1753.7 - Low Dec 15
  • SUP 3: $1746.0 - Oct 6 low
  • SUP 4: $1721.7 - Low Sep 29

Gold traded lower yesterday and attempted to clear the base of its bull channel from the Aug 9 low. The base is at $1768.9 but key support has been defined at $1753.7, yesterday’s low. The recovery from $1753.7 has taken the yellow metal back into its recent range. Initial resistance is $1794.5, Dec 1 high where a break would warn of a developing base and provide a bullish signal. Weakness below yesterday’s low would resume bearish pressure.

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