GOLD closes above its opening price after recovering from early selling pressure
Gold (GOLD) Technical Analysis Report for Jan 23, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GOLD ended Thursday at 1562.1 gaining $3.6 (0.23%). Trading up to $7.6 lower after the open, the contract managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Wednesday's high at 1559.8, the market confirmed its breakout through the previous session high after trading up to $7.7 above it intraday.
Daily Candlestick Chart (GOLD as at Jan 23, 2020):
Thursday's trading range has been $16.2 (1.04%), that's slightly below the last trading month's daily average range of $17.5. Weekly volatility is also lower, being way 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 1546.0 and 1568.8 where it has been caught now for the whole last trading week.
Three candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern. The last time a Bullish High-Wave Candle showed up on June 25, 2019, GOLD actually lost -0.99% on the following trading day.
After trading down to 1551.3 earlier during the day, GOLD bounced off the key technical support level at 1558.8 (S1). The failure to close below the support could increase that levels significance as support going forward. After having been unable to move lower than 1550.0 in the prior session, the contract found buyers again around the same price level today at 1551.3.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 1568.8 where further buy stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Gold. Out of 615 times, GOLD closed lower 53.33% of the time on the next trading day after the market condition occurred.
With four out of the other seven Commodity Markets closing higher today, the ones that stand out on the positive side are CORN gaining 1.15% and COFFEE closing 1.02% higher. On the flipside the worst performers have been CRUDE closing -0.67% lower and SUGAR losing -0.63%. Read more