GLD closes below its opening price unable to hold early session gains
SPDR Gold Shares (GLD) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
GLD finished Thursday at 153.24 gaining $1.94 (1.28%) on low volume. Trading $1.50 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (GLD as at Mar 26, 2020):
Thursday's trading range has been $2.73 (1.78%), that's below the last trading month's daily average range of $3.77. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for GLD. Prices continued to consolidate within a tight trading range between 151.01 and 155.66 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji.
After trading down to 152.08 earlier during the day, the ETF bounced off the key technical support level at 152.90 (S1). The failure to close below the support could increase that levels importance as support going forward. When prices bounced off a significant support level the last time on March 18th, GLD actually lost -1.89% on the following trading day. Prices are trading close to the key technical resistance level at 155.66 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 155.66 where further buy stops could get triggered. Selling might speed up should prices move below the nearby swing low at 151.01 where further sell stops could get activated. With prices trading close to this year's high at 159.37, upside momentum might accelerate should GLD be able to break out to new highs for the year.
Among the six 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 GLD. Out of 351 times, GLD closed higher 58.12% 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 52.99% with an average market move of 0.12%.