- Gold has been very noisy in the early part of the session here on Thursday, but what I do see is a market that’s probably just bumping along looking for its next catalyst.
- We initially did try to rally to wipe out the losses from the Wednesday session. We’ve given that back, but later in the day as actual open outcry trading is going on, we are starting to see a little bit of stability.
- Gold is in a strong longer term uptrend. So, there’s really only one direction to trade this market unless you’re looking to lose money. And that of course is to the upside. So, with that being said, I’m looking for any dip as a potential buying opportunity. We may have gotten it over the last couple of days.
Support Below
I also recognize that the $3,700 level should be supported as well as it’s a large, round, psychologically significant figure. Which had attracted a lot of attention previously. I’d be surprised if we ended up back down there because it is $62 away from where we are right now. To the upside, the $3,800 level seems to be offering a little bit of resistance, and it is worth noting that the ascending triangle that we had been in previously did suggest a move to 3800.
We hit that a lot of times technical traders will take their profit and then eventually we go further. It’s actually why I don’t specifically use targets to the exact tick. I realized that quite often they are under performing targets you actually can go further, especially when you’re in a longer term uptrend like this.
The key here is just not to be over levered. I think ultimately gold does go higher and we could be talking about a potential move to $4,000 before it’s all said and done.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
