Gold Price Outlook – Gold Continues to Look Positive in Early Wednesday Session

Gold Technical Analysis

The gold market has rallied slightly during the early hours here on Wednesday as we continue to pay close attention to the $4,200 level above because that was the most recent swing higher. It’s worth noting that so far, it looks like we made a lower low with lower volume, and that is a potentially bad sign for the overall trend.

With that being said, I look at this as a market that may be trying to find some type of range between $4,000 and $4,200. That actually is a very bullish thing because it would allow the market to accept these overall levels for gold and look at it through the prism of a market that is in an area that makes sense. If we turn around and break down below the 50-day EMA, then the $3,800 level gets targeted, as it was an area that was a target after we formed an ascending triangle previously. Anything below there probably opens up the trap door.

Breaking above the $4,200 level does open up the possibility of a move to the $4,400 level, but I don’t like it if it goes too quickly. I want it to be something where the market digests gold at this price, accepts the idea of $4,000 gold, and then continues higher. To get truly bullish in the short term, this is a nice range-bound type of market just waiting to set up and could open up a lot of opportunities.

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