GOLD runs into sellers again around 1788.9
Gold (GOLD) Technical Analysis Report for Jul 03, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GOLD ended the week 0.14% higher at 1787.3 after edging higher $0.3 (0.02%) today on low volume. 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 Jul 03, 2020):
Friday's trading range has been $5.5 (0.31%), that's far below the last trading month's daily average range of $26.1. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher 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. Additionally, two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns. The last time a Bearish Spinning Top showed up on June 22nd, GOLD actually gained 1.10% on the following trading day.
Prices are trading close to the key technical resistance level at 1790.7 (R1). After having been unable to move above 1791.7 in the prior session, the contract ran into sellers again around the same price level today, failing to move higher than 1788.9.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 1807.7 where further buy stops could get triggered. Selling might accelerate should prices move below the close-by swing low at 1766.3 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Gold. Out of 252 times, GOLD closed higher 57.54% 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 52.78% with an average market move of 0.04%.
With three out of the other three Commodity Markets closing higher today, the ones that stand out on the positive side are NATGAS gaining 1.36% and SILVER closing 0.27% higher. None of the markets ended the day in the red. Read more