Gold Prices April 3, 2014, Technical Analysis » Fx Empire Network
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Gold markets rose during the session on Wednesday, bouncing off of the $1280 level, an area that we had anticipated been somewhat supportive. That being the case, we feel that this market will more than likely trying to continue going higher. A break above the highs from the session on Wednesday is a buy signal for us, as we believe that we are sitting right on top of a significant support zone. With that being the case, we feel that this market will eventually aim towards the highs that we had recently touched, but we recognize that the move will be rather choppy.
With that, we feel that pullbacks will offer buying opportunities as there is plenty of reason to think of this market will continue going higher based upon the previous trend. This pullback that we have seen recently is roughly 50% of the move, which of course is rather common for markets to pick things back up and push them back in the original direction. We believe that buyers will step into this market now, or somewhere in this general vicinity.
The $1300 level should offer a little bit of resistance, but at the end of the day it won’t be a monumental move back above there, meaning that there should be a ton of sellers. There might be a reaction, but we would expect anything major out of that region. We would expect more trouble out of the $1320 level, as it was once support. Above there, we head towards the $1350 level, which was previous resistance.
The question then becomes whether or not selling is even possible, and at this point in time we do not feel that it is. A breakdown below the $1240 level could be enough of a reason to start selling, and below the $1200 level certainly is a major reason to start selling as it would show that the market could fall as low as the $1000 level given enough time. In the meantime though, we really don’t see a reason to sell, and will continue to buy on dips all the way back up towards the $1400 level.
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Gold Prices April 3, 2014, Technical Analysis » Fx Empire Network
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