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Gold Price Forecast – Gold markets show resistance at the same level again.

By:
Christopher Lewis
Updated: May 9, 2019, 16:56 UTC

The Gold markets rallied a bit during the trading session on Thursday again, but continue to see a lot of resistance at the 50 day EMA and the $1290 level. In general, this is a market that continues to see a lot of volatility, but quite frankly we have formed a major technical signal that we are still trying to validate.

Gold daily chart, May 10, 2019

Gold markets rallied a bit during the trading session on Thursday, reaching towards the $1290 level during the day. However, we have seen selling there again, as it is the scene of the 50 day EMA, and then also the neckline of the previous head and shoulders pattern. In other words, there should be plenty of selling pressure in that area, and therefore I think we continue to fade rallies as they occur until we get a daily close above that neckline.

Price of Gold Video 10.05.19

To the downside, we also have the 200 day EMA pictured in blue, and that of course offers a bit of support. That being said the technical signal of the head and shoulders pair does suggest that we could go down to the $1225 level. That doesn’t mean that it will be easy, and it doesn’t mean that it will be overnight, but clearly it looks as if we can continue to sell rallies until told differently. If we were to break above the neckline on a daily chart, then we could go towards the $1300 level, and then the $1350 level.

Expect a lot of volatility, and quite frankly this is probably more of a day trading environment. Keep in the back your head that the US/China trade relations will course have a major influence in this market. Lots of volatility and uncertainty will give way to an impulsive daily candle stick. That should determine where we go next.

Please let us know what you think in the comments below

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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