Gold Futures (GC) opened slightly lower the morning ahead of President Trump’s highly anticipated joint session with Congress. The lower open signaled a possible slowdown in the strong bullish run as the precious metal reached 3.5 month highs the previous session.
The bullish sentiment pushing Gold upward likely stems from geopolitical unrest combined with the Fed’s indecision surrounding future interest rate hikes. With a number of unanswered policy questions remaining up in the air, economists expect there is still a solid foundation for Gold to hold ground.
An indicator commonly utilized in trend confirmation is the 200-day moving average. Technical analysts typically classify an instrument as bullish or bearish depending on which side of the 200-day moving average the price action occurs. In in the above example, Gold Futures is charted in two timeframes, a weekly “Box” style chart is overlaid by a traditional daily candlestick. Multi-timeframe analysis is made simple via NinjaTrader’s intuitive charting suite allowing for more granular views of market structure. The weekly 200-day moving average (green) is hovering right at current price action levels, while the daily (white) remains above.
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