The gold spot continues to bounce between 1717 and 1760, the levels that I correctly identified two months ago.
Let’s have a closer look.
The weekly candle is kind of neutral. While it can be viewed as a Bullish Harami, at the same time it was clearly rejected at 1760, in important resistance level, and closed below the weekly 8 EMA line.
The previous 5 weeks closed within the 1717-1760 corridor and I view that the stock can continue the horizontal movement for the next several weeks, possibly until it hits the upper boundary of the downward channel.
Current odds: Neutral
The gold spot formed a Dark Cloud Cover on Friday. For confirmation, it needs to close below the Friday’s low.
Current odds: Moderately Bearish
- Horizontal development between 1717 and 1760 for multiple weeks.
- A weekly closure above 1760 – start of a bullish trend.
- A weekly closure below 1717 – continued downtrend.