IAU pushes through key technical resistance level
iShares Gold Trust ETF (IAU) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
IAU finished the month 2.78% higher at 16.99 after gaining $0.06 (0.35%) today. Today's close at 16.99 marks the highest recorded closing price since November 26, 2012. Closing above Monday's high at 16.94, the market confirmed its breakout through the previous session high after trading up to $0.12 above it intraday.
Daily Candlestick Chart (IAU as at Jun 30, 2020):
Tuesday's trading range has been $0.18 (1.07%), that's slightly above the last trading month's daily average range of $0.16. 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 IAU.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern.
Buyers managed to take out the key technical resistance level at 16.96 (now S1), which is likely to act as support going forward. The last time this happened on June 16th, IAU gained 0.12% on the following trading day. After having been unable to move lower than 16.88 in the prior session, IAU ETF found buyers again around the same price level today at 16.88.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to previous low" stand out. Its common bullish interpretation has been confirmed for IAU ETF. Out of 441 times, IAU closed higher 53.97% 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 56.92% with an average market move of 0.33%.