GOLD slides to lowest close since August 2nd
Gold (GOLD) Technical Analysis Report for Nov 07, 2019 | by Techniquant Editorial Team
GOLD finished Thursday at 1469.4 tanking $22.6 (-1.51%) on low volume. Today's close at 1469.4 marks the lowest recorded closing price since August 2nd. The bears were in full control today, moving the market lower throughout the whole session. Closing below Wednesday's low at 1483.8, the contract confirmed its breakout through the previous session low after trading up to $22.4 below it intraday.
Daily Candlestick Chart (GOLD as at Nov 07, 2019):
Thursday's trading range has been $32.2 (2.16%), that's far above the last trading month's daily average range of $16.8. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for GOLD.
Three candlestick patterns are matching today's price action, the Bullish Hikkake Pattern and the Last Engulfing Bottom Pattern which are both known as bullish patterns and one bearish pattern, the Black Candle.
After trading down to 1461.4 earlier during the day, the market bounced off the key technical support level at 1467.0 (S1). The failure to close below the support might increase that levels importance as support going forward. GOLD closed below the 100-day moving average at 1485.3 for the first time since May 30th. After having been unable to move above 1495.9 in the prior session, the contract ran into sellers again around the same price level today, missing to move higher than 1493.6. The last time this happened on Monday, GOLD lost -1.79% on the following trading day.
Crossing below the lower Bollinger Band for the first time since March 4th, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 1495.9 or signal the beginning of a strong momentum breakout leading to even lower prices.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Down Move" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Gold. Out of 203 times, GOLD closed higher 56.65% 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 SILVER losing -3.01% and NATGAS closing -1.68% lower. On the flipside the best performers have been COFFEE closing 1.35% higher and CRUDE gaining 1.2%. Read more