- 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).
Trend: Bullish above $1,950
|Today last price||1937.23|
|Today Daily Change||21.15|
|Today Daily Change %||1.10|
|Today daily open||1916.08|
|Previous Daily High||1949.4|
|Previous Daily Low||1863.24|
|Previous Weekly High||2075.32|
|Previous Weekly Low||1960.67|
|Previous Monthly High||1984.8|
|Previous Monthly Low||1757.7|
|Daily Fibonacci 38.2%||1916.49|
|Daily Fibonacci 61.8%||1896.15|
|Daily Pivot Point S1||1869.75|
|Daily Pivot Point S2||1823.41|
|Daily Pivot Point S3||1783.59|
|Daily Pivot Point R1||1955.91|
|Daily Pivot Point R2||1995.73|
|Daily Pivot Point R3||2042.07|
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.