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Still Appears Vulnerable

GOLD TECHS
  • RES 4: $2030.0 - High Aug 11 and key resistance
  • RES 3: $2025.4 - 76.4% retracement of the Aug 7 - 12 sell-off
  • RES 2: $2015.7 - High Aug 18 and key near-term resistance
  • RES 1: $2006.7 - High Aug 19
  • PRICE: $1964.3 @ 06:55 BST Sep 2
  • SUP 1: $1949.9 - 20-day EMA
  • SUP 2: $1902.9 - Low Aug 26 and key near-term support
  • SUP 3: $1899.0 - 50-day EMA
  • SUP 4: $1863.2 - Low Aug 12 and the reversal trigger

Gold traded higher yesterday. From a broader perspective, the yellow metal still appears vulnerable. The sell-off on Aug 19 signalled the end of a correction between Aug 12 - 18. Also, key resistance at $2030.0, Aug 11 high remains intact. In pattern terms, Aug 19 is a bearish engulfing candle highlighting a shift in sentiment. If correct, this has exposed key support at $1863.2, Aug 12 low. Initial firm resistance is at 2015.7, Aug 18 high.

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