Advertisement
Advertisement

Gold Price Forecast November 7

By:
Christopher Lewis

Gold markets pulled back for the third day in a row during Tuesday as we awaited midterm election results in the United States. It looks as if the $1250 level is in fact going to be significant resistance. However, we have recently seen a very impulsive candle to the upside so I suspect there is going to be a bit of a “push pull” type of market.

Gold daily chart, November 07, 2018

Gold markets look like they are ready to roll over again but I think that this is simply going to be an attempt to try to find buyers underneath. The $1210 level or so is significant support. I suspect we will have to look towards short-term charts for buying opportunities, and in the meantime you are probably better off simply standing on the sidelines and waiting until we see some type of bounce. The alternate scenario of course is that we break above the $1250 level, and if we can break above there I think it’s going to be very bullish and they move towards the $1275 just waiting to happen.

Price of Gold Video 07.11.18

I think at this point there is a decent bottoming pattern underneath, and I think it’s only a matter time before the buyers continue to go into this market, if for no other reason than to some type of safety. I do think that longer-term charts dictate that the $1200 level underneath is support in the $1400 level above is resistance. Because of this, it makes sense that we are probably going to continue to go higher, at least until we can finish that consolidation area. Ultimately, I like the impulsive green candle from four days ago, and I think it shows us an opportunity to start going long as we can then go with what seems to be a building groundswell of support.

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.

Did you find this article useful?

Advertisement