GOLD: CANDLES SPEAK: 11.03.2021

Today’s closure instills optimism. Two days in a row the daily candles closed above the daily 8 EMA and I view this as a very positive sign at the beginning of the last trading day this week.

The stock has a good chance to close the week above 1732.80, above 20 EMA, to form a Bullish Engulfing on the weekly time frame. In case of closing above 1757.40, the Engulfing would be even stronger.

I am also seeing a possible closure between 1732.80 and the 8 EMA line. In this case the candles would make a Piercing Line combo, also a bullish one, not as strong as a Bearish Engulfing, but still keeping the odds on the bullish side.

If the week closes lower than today and below the 8 EMA line, I would be viewing this event as a harbinger of a continued downtrend.

Let’s see how the week closes on Sunday.

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