Gold markets rallied again during the day on Monday, after initially pulling back a bit to find some buying. The $1325 level is just above though, and that’s an area that should continue to cause resistance due to the large, round, psychologically significant figure. Beyond that, if we can break above that level it would not only break that big figure but will also break above the previous uptrend line. That of course would both be very bullish sign’s.
Gold Prices Video 26.03.19
If we do pull back from here, it’s likely that we will go looking towards the $1300 level as support. Beyond that, we could break down below there and go looking towards the $1275 level underneath. That’s an area that features the 200 day EMA, and of course previous support. At this point, it looks as if that could be a bit of a “floor” in the market.
All things being equal, we should pay attention to the fear trade, whether or not money is flowing into precious metals to protect trading accounts that are suffering at the hands of depreciating currency. If we do get that, then we will probably go looking towards the $1350 level on the break out. To the downside, a break below the 200 day EMA is a longer-term sell signal, which could open the door down to the $1200 level, albeit unlikely at this point. All things being equal, it’s probably more or less consolidation that we will be seeing in the short term, perhaps in an attempt to finally build up enough pressure to break out.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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