Gold markets rallied a bit during the trading session on Wednesday, breaking above the top of the hammer from the Tuesday session. By doing so, it shows that the market is still trying to break out to the upside but obviously we have a lot of noise above. The $1600 level is a bit of a “ceiling” for the market and should be looked at as such. Nonetheless, the gold market has been very bullish as of late, so this pullback is more than likely going to be looked at with a sense of welcome by the bullish traders out there.
Gold Analysis Video 16.01.20
The 50 day EMA under at the $1508 level of course offer support, but furthermore it’s the $1525 level offered support as well. The market will continue to be very noisy, and of course there are all lot of back-and-forth traders due to the idea of the global economy slowing down, but at the same time global tensions easing. In other words, we are all over the place with risk sentiment but when you look at the technical analysis, if you use a little bit of artistic license, you can make a bit of an argument for a bullish flag right now, which would suggest a move towards the $1750 level. Granted, that’s going to take quite some time to get there but one has to feel that it’s only a matter of time before somebody somewhere does something stupid to jolt the markets. That’s been the pattern for several years now, so I’m still bullish longer term.
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This article was originally posted on FX Empire
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