- Yesterdays hanging man candle warns of a potential trend change.
- A negative price today would confirm the bearish hanging man reversal.
Gold's (XAU/USD) recovery from the low of $1331.91 yesterday, but closed with marginal losses at $1340.78, thus forming a hanging man candlestick on the daily chart.
The pattern indicates bulls market exhaustion (as prices ended on a negative note yesterday, despite the recovery from Intraday Low). What happens on the next day after hanging man candle decides the next move in asset prices.
The short-term bearish reversal would be confirmed if gold closes below $1326 (10-day MA + ascending trendline).
The American dollar is showing signs of life against the Japanese Yen. EUR/USD and GBP/USD also look overbought and due for a correction as indicated by bearish inside day candle on their respective daily charts. Thus, gold may dip below $1326 today.
That said, the political uncertainty in Germany and the threat of US government shutdown could cap the downside in the safe haven yellow metal.
Gold Technical Levels
Reuters technical report says. " Spot gold still targets its Sept. 8, 2017 high of $1,357.54 per ounce, as suggested by its wave pattern and a retracement analysis."
"The analysis is on the downtrend from $1,357.54 to the Dec. 12 low of $1,235.92. It reveals that gold has eventually overcome the barrier at $1,341 - the 86.4 percent level, after a brief correction."
"The metal is riding on a wave 5, the fifth wave of a five-wave cycle from $1,307.90. The cycle has been developing within a rising channel, which suggests a peak of the wave 5 around $1,357."
"A projection analysis and a falling trendline on the daily chart indicate a similar target at $1,354, the 50 percent level of an upward wave C."
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD posts gain, yet dive below 0.6500 amid Aussie CPI, ahead of US GDP
The Aussie Dollar finished Wednesday’s session with decent gains of 0.15% against the US Dollar, yet it retreated from weekly highs of 0.6529, which it hit after a hotter-than-expected inflation report. As the Asian session begins, the AUD/USD trades around 0.6495.
USD/JPY finds its highest bids since 1990, approaches 156.00
USD/JPY broke into its highest chart territory since June of 1990 on Wednesday, peaking near 155.40 for the first time in 34 years as the Japanese Yen continues to tumble across the broad FX market.
Gold stays firm amid higher US yields as traders await US GDP data
Gold recovers from recent losses, buoyed by market interest despite a stronger US Dollar and higher US Treasury yields. De-escalation of Middle East tensions contributed to increased market stability, denting the appetite for Gold buying.
Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30
Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data
The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.