The recent rally in gold left a bullish candlestick on last Friday’s close, just below the downtrend, and Andy Dodd, Head of Technical Research at Louis Capital Markets, thinks that today’s close will prove decisive in whether gold is able to break out of its downtrend channel (see Chart).
Dodd says that if, however, gold closes below 1263.93 it will leave a Bearish Engulfing candle on the chart, which would be a signal that the downtrend will hold.
Read the full report, including an analysis of the following futures markets:
STOXX Europe 600
EURO STOXX 50