Gold Markets Weekly Technical Analysis
The gold market initially took off to the upside during the course of the week, but we have seen a very ugly reaction resulting in a candlestick I believe that suggests that we just aren’t ready to go higher. Now, having said that, we have been all over the place as of late, so all things being equal, I think this tells us the market is entering a somewhat neutral phase.
There is significant support underneath, especially near the $2,625 level, but then again at the $2,600 level and the uptrend line. If we turn around and rally from here, the market could go looking to the $2,750 region, but we’ll have to wait and see. I think what we are looking at here is just simple digestion of a very good year.
Gold at one point this year had been right around the $1,800 level and now we are up about 800$ and some odd dollars. So, it does make a certain amount of sense that we would take a little bit of a breather occasionally. If we break down below the $2,500 level, then I think you have to assume that the trend might have a little bit deeper correction. But ultimately, I still think we’re probably more sideways than anything else, especially considering the time of year we’re in, as a lot of traders will be thinking of the holidays more than anything else.
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