- Gold created a candle with long upper wicks on Wednesday, signaling indecision in the market.
- The next move depends on the follow-through – today’s close is pivotal.
Gold is currently trading at $1,480 per Oz, representing 0.21% drop on the day.
On Wednesday, the yellow metal witnessed two-way business before ending the day with moderate losses at $1,494.
The long wicks attached to Wednesday’s candle represent indecision in the market place. Also, Gold remains trapped in a sideways channel, as seen in the 4-hour chart.
The focus, therefore, is on today’s close. Acceptance below $1,483 would imply a continuation of the sell-off from recent highs above $1,550 and could yield a drop to $1,450.
That bearish case, however, would weaken if the 50-day moving average, currently lined up near $1,482 proves a tough nut to crack.
On the other hand, a close above Wednesday’s high of $1,511 would imply bullish reversal and could invite stronger buying pressure, possibly leading to a retest of $1,530.
Daily chart
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Trend: Bearish
Pivot points
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