Weekly Outlook: Gold Confirms Reversal
The gold has probably bottomed out after tumbling for consecutively 9 trading days.
Last Friday, despite a 'much better than forecast' NFP, the price went on to recover all losses and closed with a strong bullish candle, creating an bullish engulfing candlestick pattern right at the bottom of a 6-months bearish channel.
The price also manages to close above the 5 moving average for the first time in 2 weeks, indicator such as RSI is showing an extremely oversold signal with a strong uptick now, and the Bollinger band is finally showing signs of closing inwards.
The fact is that the NFP event wasn't as good as it seems because the unemployment rate failed to come down and average hourly earnings is not climbing enough at all.
In any case, we can now expect a reversal or at least some sort of meaningful pullback this week.
Last Friday, despite a 'much better than forecast' NFP, the price went on to recover all losses and closed with a strong bullish candle, creating an bullish engulfing candlestick pattern right at the bottom of a 6-months bearish channel.
The price also manages to close above the 5 moving average for the first time in 2 weeks, indicator such as RSI is showing an extremely oversold signal with a strong uptick now, and the Bollinger band is finally showing signs of closing inwards.
The fact is that the NFP event wasn't as good as it seems because the unemployment rate failed to come down and average hourly earnings is not climbing enough at all.
In any case, we can now expect a reversal or at least some sort of meaningful pullback this week.
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