- Gold markets rallied a bit Tuesday only to find a lot of resistance near the 50-day EMA.
- Furthermore, we are sitting just below the $1800 level, so it does make quite a bit of sense that we would see plenty of sellers.
- The $1800 level has been important support in the past, so it’s only a matter of time before “market memory” comes into the picture.
Finding Answers at the $1720 Level
The shape of the candlestick is a shooting star, and that of course is negative. Because of this, it’s very likely that we will continue to see plenty of downward pressure, but I don’t necessarily know that it would be the end of the gold market trying to rally, just that it might be ready to pull back. I think the real question is found answered at the $1720 level. If we break down below there, then we could put a serious attempt into the idea of breaking down below the $1680 level. If we break down below there, then the market will unwind, perhaps going down to the $1500 level.