Gold Futures Prices October 24, 2012, Technical Analysis

By FX Empire Analyst - Christopher Lewis
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The gold markets initially rallied during the Tuesday session, but found the area above $1720 as overly resistive. Because of this, the market fell and formed a rather ugly looking candle. This candle does look a bit like a shooting star, and is presently sitting just above the 1700 level.

Let's not mince words here; we are very bullish of gold for the long term. Every time we see this market fall like this, we simply look for areas in which to start buying again. $1700 should be a rather significant support level, and as long as it can hold we think that buying a small amount in this general vicinity is appropriate. However, if it gives way we could see a test of the $1650 level and as a result, we would buy even more there. We do however; want to wait until we see a supportive candle such as a hammer or engulfing green one.


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