16.08.201808:58 Forex Analysis & Reviews: Technical analysis of Gold for August 16, 2018

Long-term review

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Gold price has overshot below the lower wedge boundary and is forming a bullish reversal candle. Gold price moved as low as $1,160 area providing a better-than-expected sell profit from our yesterday intraday short idea once $1,193 was broken downwards.

Black lines - downward sloping wedge pattern

Blue line - Bullish divergence

Magenta line - long-term resistance

Gold price remains in a bearish trend. Price is below both the tenkan- and kijun-sen (red and yellow lines) indicators. Price remains inside the wedge pattern even if we have seen an overshoot earlier this morning. Price is forming a bullish hammer (reversal pattern) but we need to be patient to see at the end of the day how this will have been formed. Resistance at $1,211 is key for the short-term trend. We could see a bounce towards the upper wedge boundary or at least towards the tenkan-sen at $1,190-93.

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