Shanktown

Gold Analysis following a giant Bullish Candle

FX:XAUUSD   Gold Spot / U.S. Dollar
Quick analysis starting from the extremely large bullish engulfing at 03:00. 11 Candles

Price reached new highs with a lot of volume. This high volume with new highs makes me think that Price would like to continue up.

Let's look at the next candles though.

Candle 2 is a shooting star followed by a spinning top. These two candles can be a sign of a reversal. As you can see, price continued to go up. Pay attention to the wick on candle two. This later becomes an area of resistance.

Candles 5 and 6 are bullish and bring price back up to that previous wicked area. Candles 6 and 7 create a Piercing Pattern. Pay attention also to how the price wicks up and comes back down.

Candle 8 is almost like a shooting star- a long upper wick which pushes price back down. Volume shows that the bulls may be losing some strength.

Candle 9 could be considered a hanging man-small body and long lower wick at resistance. This can be a bullish signal.

Candle 10 touches the Resistance again.

Let's see where candle 11 goes. Possibly Bearish?
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