GOLD surges, gaining $44.1 (2.21%) within a single day
Gold (GOLD) Technical Analysis Report for Aug 04, 2020 | by Techniquant Editorial Team
GOLD ended Tuesday at 2037.1 surging $44.1 (2.21%). This is the biggest single-day gain in over three months. Today's close at 2037.1 marks the highest recorded closing price since September 13, 2011. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 2009.5, the contract confirmed its breakout through the previous session high after trading up to $28.2 above it intraday.
Daily Candlestick Chart (GOLD as at Aug 04, 2020):
Tuesday's trading range has been $55.1 (2.76%), that's far above the last trading month's daily average range of $30.9. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for GOLD.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 2000.0 (now S1), which is likely to act as support going forward. The last time this happened on July 21st, GOLD gained 1.48% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 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 52.94% 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 59.66% with an average market move of 1.01%.
With five out of the other seven Commodity Markets closing higher today, the ones that stand out on the positive side are SILVER gaining 7.25% and NATGAS closing 2.87% higher. On the flipside the worst performers have been CORN closing -2.51% lower and WHEAT losing -2.26%. Read more