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Today, we are diving into the recent bearish momentum that is accelerating in the market. Gold is currently heading towards a retest of support around the 50-Day MA at 2,638, or potentially even lower. This downward trend is a concerning sign for investors, as it could signal a violation of the trend structure and indicate further bearish movement.
However, there is still hope for support as the higher 50-Day MA has historically shown resilience. After reclaiming the 50-Day line in early July, natural gas successfully tested support around this line, leading to a subsequent rally. The 20-Day MA has also been providing support for the rising trend, indicating that there is a chance for a bounce back from current levels.
When analyzing the trend channel, we see that a failed breakout has occurred despite initial signs of a bullish move. The market recognized resistance around the top channel line, leading to a potential fall towards the lower uptrend line. Whether or not the 2,600-swing low is tested will depend on how the market reacts in the coming days.
Additionally, a weekly bearish pattern was triggered today, following a doji shooting star formation that broke below last week’s low of 2,725. This breakdown further confirms the bearish sentiment in the market and highlights the importance of monitoring these patterns for potential trading opportunities.
For a comprehensive overview of today’s economic events and how they are impacting the market, be sure to check out our economic calendar for real-time updates and analysis.
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