Gold GC-Mini Market Analysis
The Gold GC-mini market has been on an historic tear, making the past week a study in parabolic momentum, climax, and the inevitable, high-volume search for a trading range. The market is in a strong bull trend, but it is currently showing signs of being overextended. Price rebounded higher after the correction, putting a tail through the 50% mark of the range, however was unable to close a bull bar body above the halfway point.
The Weekly Gold chart
- Near-vertical rise over the past few weeks.
- The push up to all time highs created a parabolic wedge.
- Trends this steep are usually unsustainable.
- The tail on this week’s bar was the closest price was to the 20 moving average in almost 2 years.
- Bulls bought up the near MA area, sending price to the middle of the range. Revealing bulls eager for a deep discounts.
- Body to tail ratio is used to monitor the strength of a bar. Even though the past 2 weeks had enormous range, these bars are more tail than body.
- Likely strong two-way action rather than a straight-line continuation.
- Bulls will try to hold pullbacks to keep the uptrend alive.
- Bears will aim to trap buyers into a significant correction.
The Daily Gold chart
- No Bars closing above the 50% of the record breaking range.
- 5 of the past 7 bars are bearish.
- Bear bars have significant tails beneath. Revealing the presence and attitude of eager buyers.
- Bulls want to close a bar above the 50% of the range. This would be a strong buy signal towards reclaiming all time highs.
- Potential bear flag.
- Monday was the 2nd consecutive bar to close beneath the 20 MA.
- Friday’s bull bar was the strongest bar of the week, closing near its extreme.
- Bulls want a follow through to Friday’s bull bar which closed on near its extreme.
- Bears want to defend the upper half of the range creating a lower high while sending price down to create a lower low.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
