GOLD: Weekly: 14.03.2021

This week closed with the optimistic tone. Following one of the possible scenarios that I outlined few days ago, the weekly candles produced a Bullish Harami combo. This is a bullish reversal sign, however, it is considered not as strong as a Bullish Engulfing. Still, the odds flipped to the bulls side.
Let’s discuss the possible developments in details.

Daily

During this week, the daily candles produced a very strong Bullish Engulfing on Tuesday that was confirmed on the next day. The Thursday’s and Friday’s candles could be interpreted as a pause on very high volatility. The fact that the last 4 candles closed above the daily 8 EMA line is very positive and the odds are definitely in the bulls camp.
The next target for daily candles is to close above the daily 20 EMA line, and this would confirm the seriousness of bulls.

Weekly

The weekly candlesticks produced a Bullish Harami combo. In order to continue with the reversal and confirm the Harami, the next week would need to close above 1757.40, March 1 high.
During the week the price bounced off the weekly 100 MA line and I view this as an indicator of additional support. The RSI moved along with price.
The odds are cautiously bullish now.

SUMMARY

I am viewing that a rather slow advance of the price as a very positive sign. The stock is building the foundation for the next move.

There is a high chance of a continued slow advance. The first positive sign would be a closure above the daily 20 EMA line.

If the next week closes above 1757.40, March 1 high, the reversal would be confirmed.

If the next week closes with a green candle, but below 1757.40, the confirmation would likely has to wait for another week.

If the next week closes with a red candle, the odds would flip to the dark side, increasing chances of further downtrend.

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