The precious yellow metal continues to remain highly volatile after another wild roller-coaster week which ended the Friday’s session posting a bullish outside range day, after rejecting the critical support level at $1,450-60.
Since posting an intraday (Friday low) at $1,455, spot gold bulls have staged many attempts to the upside, but presently are held back by the resistance at $1,515, after Friday’s challenge hit a brick wall of resistance here.
With this level intact, the outlook for spot gold remains uncertain as we still need confirmation to the bullish outside range day, (engulfing candle).
The bullish engulfing pattern is formed by two candles (two periods) where the second candle completely ‘engulfs’ the real body of the first one.
A break above $1,515 should confirm the engulfing candle to a potential trajectory of $1,555-65. Reassess from there.
Conversely, a break of the bullish foundations of $1,450-60 may expose the region of $1,400-20. Reassess from there.