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The sideways action may not have evolved into a new uptrend. However, the fact the price has moved above its channel should create caution. It would be necessary to wait and see if the market has now found new momentum or simply a higher top side to the channel. As price moves from point 1 to point 2, it may be tempting to open a short position at point 2 with the view that a new bear trend is underway.

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