- Gold is lacking a clear directional bias for the third straight day.
- A close above Tuesday’s Doji candle is needed to confirm a bullish breakout.
Gold created a Doji candle for the second day on Wednesday, indicating indecision in the market place.
A Doji occurs when an asset sees opens and closes almost at the same level within the same timeframe on the chart. The candle comprises of a small body and long wicks, a sign the market is undecided as neither buyers nor sellers are in control.
In such cases, technical trades usually wait for a strong directional cue to emerge in the form of a convincing break beyond the Doji’s trading range.
As a result, the immediate outlook would turn bullish if the yellow metal rises above $1,732 (the high of Tuesday’s Doji candle). On the other hand, a move below $1,713 (the low of Wednesday’s Doji candle) would imply a bearish breakdown.
At press time, gold is sidelined around $1,724 per ounce. A close below $1,713 will likely yield a re-test of the recent low of $1,670. On the other hand, a bullish close could power gains toward $1,765 (2020 high).
Daily chart
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Trend: Neutral
Technical levels
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