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Gold Price Forecast March 27, 2018, Technical Analysis

By:
Christopher Lewis
Updated: Mar 27, 2018, 04:56 UTC

Gold markets initially fell on Monday but turned around to form a hammer like candle as we continue to press against the $1350 level. The next 24 hours will be crucial, because that will determine whether this is going to be a hammer, or a “hanging man.”

Gold daily chart, March 27, 2018

Gold markets initially fell during the trading session on Monday but turned around to form a massive hammer. The hammer is just below the $1350 level, which is a resistance barrier as you can see on the daily chart. If we can break above that level, the market will test the $1360 level, which is the end of the overall resistance from what I can see. If we can break above the $1360 level, I think the market could continue to go towards the $1400 level.

A breakdown below the bottom of the hammer would be a very negative sign and turn it into a “hanging man.” That of course is a very negative sign, and I think at that point we would likely see gold dropping towards the $1330 level, possibly the $1310 level. I think that there is a significant amount of concern out there that could move this market, as gold sometimes is thought of as a haven in times of trouble. With the concerns around a potential trade war, that of course will continue to potentially move the gold market as people use it to protect their wealth if things get dicey between the United States and China.

Ultimately, I do think that we break out longer term, especially if the US dollar continues to get hammered. Otherwise, I think there is a massive “floor” around the $1300 level. If we do get a sell signal, it will be for short-term trading more than anything else.

Gold Analysis Video 27.03.18

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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