Gold markets initially pulled back during the trading session on Monday, as there were reports of positivity coming out of the calls between the Americans and the Chinese over the weekend, but since then we have seen a complete turnaround in the rhetoric, and now it suggests that perhaps there is more of a “risk on” type of scenario than originally thought. Regardless though, we found support right where I wanted to see it to validate the fact that we could still be in an uptrend after this significant pullback.
Gold Price Forecast Video 19.11.19
The $1450 level was the top of the previous ascending triangle, and that of course is a crucial level that was significantly resistive and is now supportive. At this point, if the market was to turn around and rally from here, it would then target the 50 day EMA, which breaking above there could open up the door to much higher levels. Quite frankly, I believe that the $1450 level needs to hold more than anything else, and as long as it does there is still the possibility of buying gold on these dips. However, if we were to turn around a break down below that level then the next level that we would test is the 200 day EMA, which breaking down below there would of course be very negative. All things being equal though, it’s probably best looked at as an opportunity for a longer-term set up to the upside. We have in fact seen a bit of a value play as of late, so it does make sense that perhaps we could see this market rally from here.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
More From FXEMPIRE:
- Asian Shares Mostly Higher; Hang Seng Jumps on Stimulus Expectations
- Trade Headlines Remain Market’s Key Driver
- USD/JPY Price Forecast – US Dollar Gives Up Gains Against Japanese Yen
- S&P 500 Price Forecast – Stock Markets Pressing Resistance
- Crude Oil Price Forecast – Crude Oil Markets Pull Back
- EUR/USD Price Forecast – Euro Grind Higher