IAU dominated by bulls lifting the market higher throughout the day
iShares Gold Trust ETF (IAU) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
IAU finished the month 11.01% higher at 18.86 after gaining $0.20 (1.07%) today. Today's close at 18.86 marks the highest recorded closing price ever. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (IAU as at Jul 31, 2020):
Friday's trading range has been $0.16 (0.85%), that's slightly below the last trading month's daily average range of $0.16. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for IAU.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on Tuesday, IAU gained 0.70% on the following trading day.
Prices are trading close to the key technical resistance level at 18.91 (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 18.91 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for IAU ETF. Out of 749 times, IAU closed higher 51.40% 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 54.34% with an average market move of 0.18%.