Trade of the Day: Gold

By: Dima Chernovolov

Gold continues to rise inside the daily Rising Wedge chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Rising Wedge at the 5-bar level – which reflects the slow Initial Trend (2 bars), medium Uniformity (5 bars) and strong Clarity (8 bars).  Gold is expected to rise further inside this Rising Wedge – in line with the earlier upward reversal from the support level shown below.

As can be seen from the daily Gold chart below – the pair recently reversed up with the daily Hammer from the key support level 1750.00 (former resistance level which reversed the price sharply in April, May and June). The proximity of this support level, clear daily uptrend and the rising daily Momentum increase the probability Gold will continue to advance inside this Rising Wedge.