Gold markets rallied significantly during the trading session on Thursday, slamming into the $1250 level, an area that is massive resistance. However, if we break above there I think it simply signifies that we are going to go to the $1400 level above, which would be a continuation of the longer-term consolidation. I think at this point, it’s obvious that the fear out there is palpable, and therefore it will be interesting to see how goal behaves. Long thought of as a safety asset, quite frankly that’s not how it has acted as of late. That being said, I think that the $1250 level is the most important thing to pay attention to on the chart. If we can close above there on a daily close, then I think it’s an excellent buying opportunity. Keep in mind that today is the jobs number though, so I would wait until a daily close above there.
Gold Technical Analysis Video 07.12.18
Ultimately, if we obviously form a lot of resistance at the $1250 level and pulled back somewhat drastically in the short-term charts, I would be much more interested in shorting this market as this area has offered a lot of resistance. The 50 day EMA is starting to turn up though, so that is somewhat of a bullish sign. One thing that I would suggest is keeping your trade position somewhat light, as volatility is sure to be a fact of life over the next 24 hours.
This article was originally posted on FX Empire
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