Gold markets initially tried to rally during the trading session on Monday, as we continue to see a lot of exhaustion and volatility. At this point in time, I suspect that there are plenty of buyers underneath though, especially near the $1500 level and of course is the $1450 level, an area that was initially the top of an ascending triangle, and it should send this market back to the upside as that previous resistance and should now offer a bit of buying pressure. Beyond that, there was the previous uptrend line that should come into play, and of course the 50 day EMA which is just above it. Either way, I’m looking for an opportunity to pick up gold “on the cheap” if we do break down below the psychologically important $1500 level.
Gold Analysis Video 10.09.19
Looking at this chart, it seems like the market will continue to find plenty of buyers underneath so I think it’s only a matter time before we can get long of this market. All things being equal this is a market that got ahead of itself and now is trying to come back down to reality. The area below should continue to attract a lot of attention, and therefore I welcome the idea of a break down below the $1500 level as an opportunity to make more money. I believe that this market continues to see plenty of volatility, but I also believe that it will eventually go much higher, perhaps reaching towards the $2000 level over the longer-term.
Please let us know what you think in the comments below
This article was originally posted on FX Empire
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