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Gold Candle Patterns Highlight Bearish Risk

Attention in gold remains on two recent candle patterns that highlight a developing bearish threat.

  • The sell-off on Aug 19 signals the likely end of the correction between Aug 12 - 18.
  • In pattern terms, the Aug 19 sell-off is a bearish engulfing candle.
  • This pattern also reinforces a bearish candle pattern on Aug 11. The sharp sell-off on this day confirmed what appears to be a standard line. This is a continuation pattern and suggests market sentiment is bearish.

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