Gold markets initially fell during the week but turned around to show signs of bullish pressure. Looking at the shape of this candle stick, the market suggests that we are ready to go higher. However, there is a lot of resistance between January and May, and I think that the $1350 level above is the target, and that being the case I think that we have more of a grind higher. I do prefer the upside, as I think the $1300 level should be rather supportive. Looking at the daily charts, we have even more of a clue.
Price of Gold Video 11.02.19
The daily charts featured a hammer on the Thursday session, and then a grind higher on Friday. Because of this, I do think that we will eventually make an attempt to break out, and with a softening Federal Reserve it’s very likely we will in fact see that happen. However, if we were to turn around and break below the $1300 level, then the market probably goes to the $1275 level. This is a market that has been very bullish as of late, so I think dips should offer value, but that doesn’t mean there isn’t some type of pullback that could be significant coming. I believe that short-term pullbacks are nice buying opportunities with an eye on the longer-term charts. If and when we can finally break above the $1350 level, then the market can go to the $1400 level next.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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