Gold markets broke down a bit during the trading session on Tuesday, slicing through the $1275 level. At this point I believe that it’s only a matter time before the market continues to go lower and I look at short-term charts as selling opportunities. I don’t like the idea of buying gold, at least not until we take out the uptrend line that I have marked on the chart that touches the top of the Tuesday candle from last week. In other words, this is a market that can’t be bought. Signs of exhaustion will be sold on short-term charts, and the fact that we have finally broken through this level and the 200 day EMA suggests there should be more pressure.
Price of Gold Video 24.04.19
To the downside I anticipate that the $1260 level should be targeted, and then eventually the $1250 level. That will be the scene of your next battle, and at this point the market is very likely to continue to see downward pressure going forward. Overall, this is a market that is probably going to move counter to the US dollar, which is enjoying a significant amount of strength. With that being the case it’s very likely that rallies will offer opportunities. Longer-term traders continue to look towards much lower areas, such as the $1200 level. If we did break above the previous downtrend line, then we could see Gold markets break to the upside but it’s very difficult to see that happening right now.
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This article was originally posted on FX Empire
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