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Gold technical analysis: Bearish outside bar reversal favors drop to $1,480
Gold closed well below $1,504 on Monday, validating the bearish outside bar candlestick pattern created on Friday. A bearish outside bar candle occurs when the price action for a specific day falls outside the high and low of the preceding day. That candlestick is widely considered a sign of indecision in the market place. However, in Gold's case, that pattern indicated bullish exhaustion. After all, the outside bar appeared following a near 90-degree rise from $1,400 to $1,535. Traders usually wait for confirmation of bearish reversal, preferably in the form a close below the outside bar's low. As noted earlier, ... (full story)