Gold Prices Forecast May 30, 2014, Technical Analysis » Fx Empire …
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The gold markets try to fall during the session on Thursday, breaking down below the $1260 level again. However, we did find enough support below in order to push the market back up, which formed a hammer. That hammer suggests that we are in fact going to continue to bounce from here, thereby sending the market even higher. The $1280 level above should be resistance, but we feel that the market will in fact head to the level. If we can get above there, it would be very bullish for the gold markets as we should reenter the previous consolidation area and possibly go as high as the $1320 level in the short term.
Gold markets have been rather beat up lately, as we broke down below the $1260 area. This area has been pretty significant as far as resistance in the past, especially around the beginning of the year. That being the case, we believe that the market will more than likely find plenty of buying orders down here, and we also have to recognize that a lot of selling pressure would have had to have been exerted to break the market down below the $1280 level. Because of this, we believe that perhaps the momentum to the downside may struggle here.
Even if we broke down below the bottom of this hammer, this is the 2nd supportive candle in a row on the daily chart and therefore we would be very hesitant to start selling a market that looks ready to bounce at this point. If we did decide we want to sell the gold markets, we would like to do it from a much higher level. In the meantime though, it does look like the market probably will bounce right about $25 before hitting major resistance. Because of this, we are short-term positive on this market, and would be buying on a break of the top of the hammer for the session on Thursday as it would show a capitulation by the sellers, at least in the near-term trading.
Gold Prices Forecast May 30, 2014, Technical Analysis
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Gold Prices Forecast May 30, 2014, Technical Analysis » Fx Empire …
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