Yesterday’s hanging man candle warns of a potential trend change. Why not stay informed with our latest 17 January Gold Price Technical Outlook, as it provides you the necessary guidance?
17 January, GKFX– 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.
- Yesterdays hanging man candle warns of a potential trend change.
- A negative price today would confirm the bearish hanging man reversal.
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.
17 January Gold Price Technical Outlook
Reuters technical report says.
” Spot gold still targets it’s 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.”
This article “17 January Gold Price Technical Outlook” was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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