GOLD closes within prior day's range after lackluster session
Gold (GOLD) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
GOLD ended the week -1.11% lower at 1734.7 after gaining $8.0 (0.46%) today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (GOLD as at May 22, 2020):
Friday's trading range has been $19.5 (1.13%), that's far below the last trading month's daily average range of $29.8. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for GOLD.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
After trading down to 1722.5 earlier during the day, the contract bounced off the key technical support level at 1722.7 (S1). The failure to close below the support could increase that levels importance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the nearby swing high at 1757.6 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 1715.3 where further sell stops could get activated. With prices trading close to this year's high at 1788.8, upside momentum might accelerate should the market be able to break out to new highs for the year.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Gold. Out of 494 times, GOLD closed higher 53.64% 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 10 trading days, showing a win rate of 53.44% with an average market move of 0.28%.
With five out of the other seven Commodity Markets closing lower today, the ones that stand out on the negative side are WHEAT losing -1.36% and COFFEE closing -1.1% lower. On the flipside the best performers have been NATGAS closing 1.5% higher and SILVER gaining 1.4%. Read more