- Gold's daily chart suggests pullback from record highs has run out of steam.
- A break above Wednesday's high is needed to confirm bullish reversal.
Gold is currently trading around $1,938 per ounce, representing a 1.2% gain on the day. Prices have recovered 4% from the low of $1,863 reached on Wednesday.
Even so, it is too early to call a bullish revival. That's because the yellow metal is yet to rise above $1,950 - the high of Wednesday's spinning bottom candle.
A spinning bottom candle occurs when an asset sees two-way business but ends the day with marginal to moderate gains or losses. It is widely considered a sign of indecision in the market place.
In gold's case, however, it could be taken as a sign of seller exhaustion, given it has appeared following a notable pullback from $2,075 to $1,863 and marks a bear failure to penetrate the ascending trendline connecting March 20 and June 5 lows.
As such, a close above Wednesday's high of $1,950 is needed to confirm a bullish revival. That will likely invite stronger chart-driven buying, yielding a break above $2,000.
On the downside, support is located at $1,913 (Asian session low) and $1,900 (psychological support).
Daily chart
Trend: Bullish above $1,950
Technical levels
Reprinted from FXStreet，the copyright all reserved by the original author.
Disclaimer: The views expressed are solely those of the author and do not represent the official position of Followme. Followme does not take responsibility for the accuracy, completeness, or reliability of the information provided and is not liable for any actions taken based on the content, unless explicitly stated in writing.
Leave Your Message Now