Gold Price Forecast – Gold markets gapped lower

Gold markets gapped lower to kick off the week, jumping below the $1400 level. However, we are starting to see buyers pick this market back up, so it’s likely that we are trying to fill the massive gap.
Christopher Lewis
Gold daily chart, July 02, 2019

Gold markets gapped lower to kick off the week, breaking below the $1400 level immediately. Perhaps this was in reaction to the G 20 meeting between the United States and China, but I think at this point traders is starting to doubt whether or not anything was actually solved. That should make Gold very attractive, and therefore the fact that we are starting to make a bit of a hammer is a very good sign. To the downside, if we were to break down below the bottom of the hammer, that would be a very negative sign and probably send this market down towards $1375, perhaps even down to $1350 after that.

Gold Price Forecast Video 02.07.19

Ultimately, the this is a market that is in and uptrend, so I do prefer filling the gap and perhaps even breaking above it eventually. If we do break above the clothes on Friday that would be a very bullish sign. Otherwise, I’m waiting to see some type of supportive candle at one of the $25 increments below to get involved. Remember, there is a gap below at the $1350 level that has yet to be filled, so falling from here could just simply fulfill that obligation before turning right back around. That should offer plenty of value at this point, so I would be all over that trade if we can get it.

Remember that this week could be a bit strange, due to the Fourth of July holiday and of course the jobs number on Friday. All things being equal though this is still a bullish market even with the gap.

Please let us know what you think in the comments below

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