Gold Falls and then Rallies Off the 21 Day Moving Average
Gold sold off in the overnight session to tag the 21 day moving average. The precious metal then reversed as the New York markets opened up and rallied to close between the 6 and 8 day moving averages. On the whole, gold rose a modest 1.5 points today. Today's doji shows that once again gold seems to be in a holding pattern and moving sideways. Although since this wave started at the end of January, all selloffs have been met with enthusiastic, if not aggressive, buying.
The Heikin-Ashi chart is more bullish and shows that price is trading above the Ichimoku cloud and that the Chikou Span (lagging line) is also trading above price and the cloud. While overall bullish, it's important to observe that today's Heikin-Ashi candle was a red candle. This followed a Heikin-Ashi doji candle the day before. All adds up to some level of uncertainty.
The volume profile chart is also bullish. Notice that the short and long term POCs are right at the same price as the 21 day moving average. That acted as a magnet for price today but then repelled price upward. This is very bullish suggesting that there is a pool of buyers camped out at the POC.
The Heikin-Ashi chart is more bullish and shows that price is trading above the Ichimoku cloud and that the Chikou Span (lagging line) is also trading above price and the cloud. While overall bullish, it's important to observe that today's Heikin-Ashi candle was a red candle. This followed a Heikin-Ashi doji candle the day before. All adds up to some level of uncertainty.
The volume profile chart is also bullish. Notice that the short and long term POCs are right at the same price as the 21 day moving average. That acted as a magnet for price today but then repelled price upward. This is very bullish suggesting that there is a pool of buyers camped out at the POC.
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