Gold markets plummeted during the trading session on Thursday, slicing through the $1300 level like it wasn’t even there. This is an area that has been important more than once, and the fact that the 50 day EMA is crossing through that level isn’t lost on me either. However, the 200 day EMA is below at the $1280 level, an area where we have recently bounced around. With that in mind, I believe that there are buyers underneath and that this could end up being a nice buying opportunity.
Gold Technical Analysis Video 15.03.19
However, we need some type of short-term hammer or bounce in order to start putting money to work. If we can recapture the $1300 level, then I think we continue to go higher, roughly to the $1325 level above. We had recently sliced through a major trendline, so of course there is some negativity in this market, and this candlestick of course isn’t going any favors either. Quite frankly, if we can break above $1300 then I think the buyers will have proved themselves to be resilient. Otherwise, we need to defend the $1280 level for this market to continue going higher. If it breaks down below that level, that would be a very negative sign and we will more than likely unwind down to the $1200 level which is the bottom of the larger consolidation area. I expect a lot of volatility and choppiness, but recognize that paying attention to the US dollar will be crucial as well, as there is an inverse correlation most of the time.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- AUD/USD Price Forecast – Aussie dollar pulls back
- Sterling Drops With The Continued Brexit Drama
- GBP/JPY Price Forecast – British pound approaching major level
- Gold Price Forecast – Gold markets plumbing
- Crude Oil Price Forecast – Crude oil grinds higher
- Natural Gas Price Prediction – Prices Rise on Surprise Inventory Draw