Gold Price Forecast – Gold markets sitting on major support

Gold markets have been sitting on major support for the last couple of trading days but were closed for Good Friday. At this point, we are at a major inflection point and could be setting up for a big move.
Christopher Lewis
Gold daily chart, April 22, 2019

Gold markets went back and forth on Thursday, and of course were closed on Friday for the holiday. At this point we are sitting at the 200 day EMA, an area that of course will attract a lot of attention. Beyond that the $1275 level is crucial when it comes to technical analysis, as it has been important a couple of times. If you squint, you can see that the uptrend line that I have drawn shows a significant head and shoulders pattern, so there are couple of reasons to think that perhaps this market is trying to break down.

Gold Prices Video 22.04.19

As I look at the Gold chart, I see two potential scenarios. The first one is that we could very well find support here and bounce, but I suspect this will probably be a simple retest of the Tuesday candle stick where we broke down through the hammer from the Monday session. That would also be a retest of the bottom of the uptrend line that makes the neckline of the head and shoulders pattern.

The second potential set up is a break down below the candle stick that formed Thursday’s trading, as it would open the door to the $1250 level, and then possibly even $1225 after that. The way the market has been acting, I suspect this is probably more likely than not. However, we need some type of confirmation on it to take action, as simply anticipating the move is a dangerous way to trade.

If we did break above the candle stick from the Tuesday session, then it’s time to start reevaluating the entire scenario laid out.

Please let us know what you think in the comments below

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.