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Christopher Lewis
Gold daily chart, October 18, 2019

Gold markets initially fell during trading on Thursday but found support at the uptrend line to turn around of form a bit of a hammer. As the market is dancing around the 50 day EMA, you would have to think that a lot of traders are interested in this general vicinity. Beyond that, we are just below the crucial $1500 level which will attract a lot of attention as well. Ultimately, I think that we will need to make a decision about the wedge that I have marked on the chart, and once we do we could get something going.

Gold Outlook Video 18.10.19

To the upside that could open up a move towards the $1540 level, followed by the $1560 level. To the downside, the $1450 level should be rather supportive as it was significant resistance from the previous ascending triangle. With that being said, short-term trading in a back-and-forth manner may work while we are in this range, but eventually we will get an impulsive candle stick that we can follow in one direction or the other. I am obviously much more comfortable buying this market that I am selling it due to the fact that central banks around the world continue to cut rates and liquefy markets. As long as that’s going to be the case it makes more sense to be a buyer than seller, but obviously we need to follow where markets go. If they start falling, it’s not your job to question why they are falling, or to simply make sure you’re on the right side of the trade.

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