IAU finds buyers again around 17.13
iShares Gold Trust ETF (IAU) Technical Analysis Report for Jul 10, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, IAU finished the week 1.3% higher at 17.18 after losing $0.06 (-0.35%) today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (IAU as at Jul 10, 2020):
Friday's trading range has been $0.16 (0.93%), that's slightly above the last trading month's daily average range of $0.14. 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 slightly higher than usual for IAU.
One bearish candlestick pattern matches today's price action, the Black Candle.
After having been unable to move lower than 17.15 in the previous session, the ETF found buyers again around the same price level today at 17.13. The last time this happened on Tuesday, IAU gained 0.58% on the following trading day.
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 17.36 where further buy stops could get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior low" stand out. Its common bullish interpretation has been confirmed for IAU ETF. Out of 442 times, IAU closed higher 54.07% 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 57.01% with an average market move of 0.34%.