GOLD finds buyers at key support level
Gold (GOLD) Technical Analysis Report for Jun 11, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, GOLD finished Tuesday at 1330.7 losing $1.1 (-0.08%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (GOLD as at Jun 11, 2019):
Tuesday's trading range has been $10.2 (0.77%), that's slightly below the last trading month's daily average range of $11.9. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for GOLD.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After trading down to 1323.6 earlier during the day, the market bounced off the key technical support level at 1323.8 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on June 7th, GOLD actually lost -0.97% on the following trading day. Prices are trading close to the key technical resistance level at 1336.7 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Gold. Out of 250 times, GOLD closed higher 58.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after eight trading days, showing a win rate of 54.00% with an average market move of 0.14%.
With five out of the other seven Commodity Markets closing higher today, the ones that stand out on the positive side are CORN gaining 2.38% and WHEAT closing 2.18% higher. On the flipside the worst performers have been CRUDE closing -0.69% lower and COFFEE losing -0.67%. Read more