GLD closes higher for the 2nd day in a row
SPDR Gold Shares (GLD) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GLD ended the week 0.82% higher at 149.00 after gaining $0.62 (0.42%) today ahead of tomorrow's Presidents' Day market holiday.
Daily Candlestick Chart (GLD as at Feb 14, 2020):
Friday's trading range has been $0.50 (0.34%), that's far below the last trading month's daily average range of $0.89. 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 GLD.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on December 23, 2019, GLD gained 0.94% on the following trading day.
Prices are trading close to the key technical support level at 148.61 (S1).
Though the market is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
With prices trading close to this year's high at 149.68, upside momentum could accelerate should the ETF be able to break out to new highs for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for GLD. Out of 66 times, GLD closed higher 54.55% 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 62.12% with an average market move of 0.78%.