Two days ago, gold charted a candlestick with the lowest low in at least three candles (blue arrow). Yesterday's candle closed above the high of the blue arrow reference. This price action effectively completed a swing low. We now see that the green fast simple moving average (SMA) converges on the orange medium SMA (black ellipse). A bullish cross will put the three averages into a bullish formation with the green fast SMA above the orange SMA and the medium orange SMA above the red slow SMA. If these develop angle and separation to the upside, an underlying bullish momentum will be expanding on the daily chart.
FXCM Research Team
FXCM Research Team consists of a number of FXCM's Market and Product Specialists.
Articles published by FXCM Research Team generally have numerous contributors and aim to provide general Educational and Informative content on Market News and Products.