FOREX Chart Of The Day: Is Gold Still Bearish
In this video we discuss why we see Gold remaining bearish and the key levels to watch out for.
Watch the video to learn more…
Hi guys, and welcome to this Blueberry Markets video update for me, John Kibbler, head currency analyst.
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In this video, we’re going to go through gold. Just give a little update of what we talked about last week, and we talked about this potential downside for gold.
If I bring back in that seasonality heat map, we can see that actually gold through November typically falls. If I just grab that in here, we can see that it’s minus 0.5 percent, just on here, that suggests to me that we could start seeing a little bit of downside to the gold market.
We talked about this last week that we could see some downside as well, and we were watching this level in particular for a reaction. The market rallied back into that level, gave us three rejections, and then it broke through but, now price is trading back below that area.
We haven’t taken out these highs through here, which is still a good sign, and we have this trend line running through here as a potential area to watch for the breakout.
What we can do here is just set this trend line up. If price breaks and closes below all these lows through here. –Okay, this is a good little zone as well, just through here around about that 1890 area.
If price can break through this level, through that trend line, close below, look for the pullback, look for the continuation to the downside.
Still looking for the market to target this 1850 level. If it breaks beyond that, then we could see some further downside to this market as well.
Going to that weekly time frame. Looks good to see a nice pullback down into this level. Because, then we looked at that seasonality report as well in the previous video, and the fact that price usually drops this time of year into a sort of the end of November start of December, then we see a rally in the price of gold.
So, still looking for this pullback to happen. Then, looking for the potential for the market to rally to the upside through December and January. So, keep an eye on gold. Still looking good, I like the idea of a break of this trend line and close below. If we get that, we can look for that short move.
Thanks for watching, speak to you soon.
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