Gold Weekly Price Forecast – Gold markets struggle during the week again

Gold markets tried to rally during the week but found the $1215 level to be too resistive to go higher. In fact, we have formed a shooting star for the second week in a row, and that does suggest that we are really starting to try to break down from here. · FX Empire

Christopher Lewis

Updated Fri, Sep 21, 2018, 11:18 PM

At this point, it’s a bit difficult to suggest that it’s going to be easy to trade this market from the long term, but we do have a couple of very crucial levels that we can pay attention to. If we can break above the $1225 level, then I think that the market could break out to the upside, perhaps reaching towards the $1250 level. If we can break above there, the market then could go to the $1300 level. The alternate scenario, I think that the market will reach down to the $1175 level. That’s an area of major support, so a break down below that level sends this market much lower, probably as low as $1100 rather quickly.

It’s likely that the easier trade is to take a break out to the upside, at least for the longer-term trader. Otherwise, we will probably see a lot of short term consolidation between these couple of levels, and that is a situation where it’s easier for the shorter term trader to go back and forth. However, looking at these longer-term charts does suggest that this area is crucial, as I have an ellipse drawn at a major gap higher back in January 2016. We have fill that gap previously, and now that we are back here informing shooting stars, I must admit that’s a rather ominous sign, but until we get some type of confirmation, longer-term traders should be patient.