GOLD pops to highest close since November 11, 2011
Gold (GOLD) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
GOLD ended the month 9.31% higher at 1994.0 after gaining $20.9 (1.06%) today. Today's close at 1994.0 marks the highest recorded closing price since November 11, 2011. Closing above Thursday's high at 1987.3, the contract confirmed its breakout through the previous session high after trading up to $18.1 above it intraday.
Daily Candlestick Chart (GOLD as at Jul 31, 2020):
Friday's trading range has been $34.0 (1.72%), that's slightly above the last trading month's daily average range of $28.9. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for GOLD.
One bullish candlestick pattern matches today's price action, the White Candle.
Unable to break through the key technical resistance level at 2000.0 (R1), the market closed below it after spiking up to 2005.4 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. When prices bounced off a significant resistance level the last time on July 15th, GOLD lost -0.88% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week High" stand out. Its common bullish interpretation has been confirmed for Gold. Out of 119 times, GOLD closed higher 52.10% 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 60.50% with an average market move of 0.96%.
With five out of the other seven Commodity Markets closing higher today, the ones that stand out on the positive side are SUGAR gaining 4.38% and SILVER closing 4.28% higher. On the flipside the worst performers have been NATGAS closing -1.14% lower and CORN losing -0.23%. Read more