Gold Price Forecast – Gold Markets Continue To Test Wedge

Gold markets fell a bit during the trading session on Tuesday, to test the lower part of the wedge that has been important for the last several weeks. It’s also the beginning of the major uptrend line, so it does make sense that we started to see buyers jump back in.
Christopher Lewis
Gold daily chart, October 16, 2019

Gold markets have been a bit negative during the trading session again during the day on Tuesday but has also continued to see buyers at the uptrend line that I have marked on the chart. With that being the case it makes sense that we are going to continue the overall move to the upside, and therefore it’s likely that the market will continue to be attracted to the $1500 level, which is a bit of a fulcrum and essentially “fair value” for this market. Overall, this is a market that also features the 50 day EMA right through the last couple of candles, so I think that we are getting a lot of “push/pull” and therefore it’s likely that we will eventually try to reach to the upside. However, breaking down below that uptrend line could change a lot of things.

Gold Technical Analysis Video 16.10.19

If we were to break down below that uptrend line, then the $1450 level is very likely to be an area where we could see a bit of support as well. Below there, then you are starting to talk about reaching down towards the 200 day EMA. That being said, I am not a huge fan of shorting Gold at this point.

All things being equal, there is a lot of different pieces out there that could continue to push gold higher, not the least of which is the fact that the central banks around the world continue to cut interest rates and of course liquefy the marketplace. With that in mind, and of course a lot of concerns with the US/China trade situation and the global slowdown, goal should continue to attract quite a bit of money, even though lately it has been a bit rough.

Please let us know what you think in the comments below

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