Gold markets went back and forth during the trading session on Tuesday, as we continue to see a lot of volatility. The $1325 level above offer significant resistance, and I think it is only a matter of time before we break out. We may need to build up enough momentum, so that of course lends itself to see several pullbacks. I think the 20 day EMA, pictured in green and currently sitting around the $1300 level, should be a major support level.
Gold Technical Analysis Video 06.02.19
If we can break above the shooting star from last week, that is reason enough to go long as well, as it would be a fresh, new high, and we would have broken above a significant resistance barrier in the form of a couple of shooting stars. At that point, I anticipate that the market would go looking towards the $1350 level, maybe even the $1400 level after that.
If we did break down below the $1300 level, then I think the market would probably go looking towards the $1275 level underneath, where this latest move began. There is also the 50 day EMA in that general vicinity, so I think it would probably be a major turn of events. Below there we have the 200 day EMA at the $1250 level, which of course is what a lot of people use for the longer-term trade, but quite frankly if we get that low a lot of technical damage would have been done at that point. Remember, the Federal Reserve looks a little bit on the dovish side at this point, so that should continue to offer a bit of strength to precious metals overall.
Please let us know what you think in the comments below
This article was originally posted on FX Empire