Gold technical analysis: Indecisive market, focus on today's close
|- Gold created a candle with long upper wicks on Wednesday, signaling indecision in the market.
- The next move depends on the follow-through – today's close is pivotal.
Gold is currently trading at $1,480 per Oz, representing 0.21% drop on the day.
On Wednesday, the yellow metal witnessed two-way business before ending the day with moderate losses at $1,494.
The long wicks attached to Wednesday's candle represent indecision in the market place. Also, Gold remains trapped in a sideways channel, as seen in the 4-hour chart.
The focus, therefore, is on today's close. Acceptance below $1,483 would imply a continuation of the sell-off from recent highs above $1,550 and could yield a drop to $1,450.
That bearish case, however, would weaken if the 50-day moving average, currently lined up near $1,482 proves a tough nut to crack.
On the other hand, a close above Wednesday's high of $1,511 would imply bullish reversal and could invite stronger buying pressure, possibly leading to a retest of $1,530.
Daily chart
Trend: Bearish
Pivot points
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.