Gold GC-Mini Market Analysis
The weekly Gold GC-mini chart is in a trading range following a climax. While the trend is up, the price action is becoming increasingly two-sided.
This week there was bullish follow through. Printing 3 consecutive bull bars puts the market into always in long. Take note of the bull bars gradually shrinking in size. The body of this week’s bull bar did not close above the prior tail. The follow through was not ideally strong.
Bulls put a tail through the 50% mark of the previous bear leg, however were unable to close a body above that 50% mark.
Based on the previous leg down, if the weekly bears get a conservative measured move, drawn by bodies without tails, this would send the price to the $3500 area.
Bulls are buying the 50% pullback of the historic parabolic run. If that initial giant run gets another similar leg, price targets will be in the $7400 area.
The market is currently holding significant support around $4700 and resistance near $4800-4850. Watch for testing of the weekly moving average and the potential for another leg down if the bears can sustain selling pressure from the parabolic wedge top.
The market is volatile, creating opportunities for both sides.
Gold GC-mini futures
The Weekly Gold chart
- Bears want the move up to be a bear flag. Setting up a 50% pullback trade that will continue another leg to the downside
- Bears want to drive price back below the moving average.
- Bears want to close consecutive bars beneath the moving average.
- Bulls want a bear channel break trend resumption.
- Bulls put a tail through though unable to close a bar above the 50% mark of the bear leg.
- Bulls want to decisively close bars above the psychological number of $5000.
- Bulls ultimately want to see a breakout above the previous all-time high to initiate a measured move.
- Bears are looking at a deep correction, seeing the potential for a larger bear trend emerging from a broad bull channel.
The Daily Gold chart
- Bears defend the psychological $5000 from being breached.
- 4 of the 5 daily bars were weak doji bars. Doji bars are trading ranges on smaller time frames.
- Thursday was the only strong daily bull bar of the week. Bars that close near the extremes are trend bars.
- Bulls were able to close the last 3 bars above the moving average.
- 8 of the past 10 daily bars have been bullish.
- Bulls want to continue the bull channel upward creating another leg up.
- Bears see a bear flag, hoping for a pullback set up.
- Bears want to create a lower high.
- Price is at the 50% pullback of the previous bear leg. Bears are hoping to defend this area and send the price down for another leg.
- Bulls want to target triangle targets to the upside.
- Bulls want measured move targets based on strong consecutive bars printed last week.
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