Gold Weekly Price Forecast – Gold markets fire off a reversal candle

Gold markets initially tried to rally during the week, slamming into the $1300 level. However, we were repelled there rather quickly, and then turned around to fall rather precipitously. With this in mind, this is not a good look for gold.
Christopher Lewis
Gold weekly chart, May 20, 2019

Gold markets initially tried to rally during the week but found so much trouble at the $1300 level that we have given up $25 in roughly 2 days. That’s a pretty decent sized move for gold, so it shows real bearishness. If we can break down below the $1268 level, that would be a very technically negative sign, both the weekly and the daily charts would agree at that point. I believe that the next target would be $1250, followed by the $1225 level, and then eventually the $1200 level.

Gold Technical Analysis Video 20.05.19

There is absolutely nothing on this chart that looks healthy at the moment, and I could even make a bit of an argument for a descending triangle if I was to be just a little bit lax with my trend line placement. Remember, technical analysis isn’t necessarily always going to be precise, and I’m sure plenty of people out there see the same thing I do.

That being said, if we were to turn around and break above the $1300 level it’s likely that this market would go much higher, perhaps reaching to the $1325 level next. In the short term though, this is a market that I think will continue to attract plenty of selling pressure, so although I believe that it’s a longer-term move lower, you may have to look to shorter-term charts the place your trade. There’s nothing wrong for a longer-term trader to be looking at shorter-term charts to fine tune their entries. This might be a perfect example of that.

Please let us know what you think in the comments below

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