GOLD closes below its opening price unable to hold early session gains

Gold (GOLD) Technical Analysis Report for Oct 09, 2019 | by Techniquant Editorial Team


GOLD runs into sellers around 1518.0 for the third day in a row
GOLD closes below its opening price unable to hold early session gains
GOLD still stuck within tight trading range
GOLD closes within previous day's range after lackluster session


GOLD finished Wednesday at 1510.8 edging lower $0.1 (-0.01%) on low volume. Trading $7.1 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.

Daily Candlestick Chart (GOLD as at Oct 09, 2019):

Daily technical analysis candlestick chart for Gold (GOLD) as at Oct 09, 2019

Wednesday's trading range has been $12.9 (0.85%), that's far below the last trading month's daily average range of $23.1. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GOLD. Prices continued to consolidate within a tight trading range between 1492.1 and 1525.7 where it has been caught now for the whole last trading week.

After moving higher in the previous session, the contract closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji.

Prices are trading close to the key technical resistance level at 1522.7 (R1). GOLD ran into sellers again today around 1518.0 for the third trading day in a row after having found sellers at 1515.3 in the previous session and at 1518.8 two days ago. The last time this happened on August 16th, GOLD lost -1.17% on the following trading day.

Though the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.

Buying could accelerate should prices move above the close-by swing high at 1525.7 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 1492.1 where further sell stops might get triggered.

Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. Its common bearish interpretation has been confirmed for Gold. Out of 68 times, GOLD closed lower 55.88% of the time on the next trading day after the market condition occurred.

With five out of the other seven Commodity Markets closing lower today, the ones that stand out on the negative side are NATGAS losing -1.67% and SUGAR closing -0.57% lower. On the flipside the best performers have been WHEAT closing 0.15% higher and CRUDE gaining 0.13%. Read more

Market Conditions for GOLD as at Oct 09, 2019

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