GLD pushes through key technical resistance level
SPDR Gold Shares (GLD) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GLD ended the month 2.74% higher at 167.37 after gaining $0.74 (0.44%) today. Today's close at 167.37 marks the highest recorded closing price since November 27, 2012. Closing above Monday's high at 166.80, the ETF confirmed its breakout through the previous session high after trading up to $1.19 above it intraday.
Daily Candlestick Chart (GLD as at Jun 30, 2020):
Tuesday's trading range has been $1.81 (1.09%), that's slightly above the last trading month's daily average range of $1.54. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for GLD.
Two candlestick patterns are matching today's price action, the White Candle which is known as bullish pattern and one bearish pattern, the Last Engulfing Top Pattern.
Buyers managed to take out the key technical resistance level at 166.99 (now S1), which is likely to act as support going forward. The last time this happened on June 10th, GLD actually lost -0.72% on the following trading day. After having been unable to move lower than 166.18 in the prior session, the market found buyers again around the same price level today at 166.18.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Last Engulfing Top Pattern" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for GLD. Out of 54 times, GLD closed higher 55.56% 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 61.11% with an average market move of 0.88%.