Gold markets obviously have supported at the $1400 level. That being said, if the $1400 level gets broken to the downside it would kick off a shooting star selling signal on the weekly chart. Those of you who are a bit nimble could try to short this market and reach for the $1375 level, or perhaps even the gap below which has yet to be filled at the $1350 level.
Gold Price Video 01.07.19
That being said, I’m a little bit more conservative in my trade decisions so I will simply be looking for buying opportunities down at that area. Even though gaps do tend to get filled, we can get a sudden reason to turn around and it could be a very painful and overdrawn trade. After all, we have the G 20 meeting this weekend, and the conversations between the Americans and the Chinese will be a major wildcard when it comes to risk appetite, which of course has a lot to do with what happens with gold.
Beyond that, with the Federal Reserve looking to cut interest rates longer term, I don’t have any interest in trying to short gold. Quite the contrary, I believe that buying gold is the only thing you can do at this point. I’m simply looking for a pullback to pick up “cheap gold” at lower levels and will take advantage of that. Until we get some type of supportive candle underneath or something of that ilk, I will be patiently waiting.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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