GLD still stuck within tight trading range
SPDR Gold Shares (GLD) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
GLD finished Wednesday at 183.97 gaining $0.52 (0.28%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (GLD as at Sep 16, 2020):
Wednesday's trading range has been $1.68 (0.91%), that's below the last trading month's daily average range of $2.45. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for GLD. Prices continued to consolidate within a tight trading range between 182.01 and 185.01 where it has been caught now for the whole last trading week.
One bearish candlestick pattern matches today's price action, the Black Candle.
Although 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.
Selling could accelerate should prices move below the nearby swing low at 182.92 where further sell stops might get triggered. As prices are trading close to September's high at 186.99, upside momentum could speed up should the ETF mark new highs for the month.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for GLD. Out of 502 times, GLD closed higher 52.39% 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 53.98% with an average market move of 0.21%.