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Gold Price Forecast – Gold Markets form Massive Candle

By:
Christopher Lewis
Updated: Jul 28, 2020, 16:04 UTC

We have ended up forming a massive neutral candlestick, and quite frankly this might be the beginning of the end of the short-term rally.

Gold

Gold markets went back and forth during the trading session on Tuesday, as the market went ballistic. We have ended up forming a massive neutral candlestick, and quite frankly this might be the beginning of the end of the short-term rally.

All of that being said, the market is clearly still bullish, at least from a longer-term standpoint. I suspect that we will probably pull back for a bit, but that should offer a nice buying opportunity, especially near the $1850 level. If we break down below there, it is very likely that we go down towards the $1800 level where we should see even more support, as it was a major breakout point. Overall, I am a buyer of dips and quite frankly this market had gotten far ahead of itself.

Gold Price Predictions Video 29.07.20

These markets cannot go straight up in the air forever, so I like the idea of picking up value when it occurs. I suspect that we are starting to see that play out, but a little bit of patience could go a long way. Remember, that is what I have been saying for days, especially when it comes to the silver market which is even worse.

The length of the candlestick is somewhat telling, showing just how volatile this overall situation is. I do like the idea of buying a pullback, but I think you would be foolish to try to short this market, as it is most decidedly in an uptrend and of course the US dollar is on its back foot. To the upside, I still think we go looking towards the $2000 level, which of course is crucial to overcome. I think it will take quite a bit of momentum to make that happen, so this probably takes multiple attempts, because blowing through the $2000 level would be difficult to imagine.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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