[ad_1]
Gold Weekly Technical Analysis
Gold markets have rallied significantly during the course of the trading week to reach the 50-Week EMA. The market broke above the $1900 level, which of course is a very bullish sign. That being said, we also have to pay close attention to this area because we had recently broken out of a rather significant symmetrical triangle, and now we are getting close to testing the bottom of that area. The size of the candlestick is rather impressive, but it’s worth noting that we still have not wiped out the nasty candlestick from a couple of weeks ago. In other words, the next candlestick should be rather crucial.
If the market were to close below $1900 on a daily chart in the futures market, then it’s likely that the market could go down to the $1850 level, possibly even down to the $1800 level given enough time. The 200-Week EMA is sitting right around that same area as well, so I think it comes into the marketplace as a potential “floor in the market.”
Keep in mind that the gold market will continue to move back and forth due to the interest rate markets, and of course the US dollar. Alternatively, this is a scenario where you have to keep an eye on multiple markets, but it is possible for gold to move right along with the interest rate markets as well. In other words, we are at a technically important level, and it will be an interesting couple of days. That being said, pay close attention to how we behave in this general vicinity, it could give us an idea as to where we go over the longer term.
For a look at all of today’s economic events, check out our economic calendar.
[ad_2]
Source link
