(MENAFN- Daily Forex) gold markets have initially tried to rally during the trading session on Wednesday but gave back gains yet again as we continue to see the $1880 level offer resistance. We have seen 3 inverted hammers form in a row, that of course is a sign that we have a lot of noise just above. I think we got a situation where there is a lot of overhead downward pressure, and that will probably continue to be the case.
Advertisement ready to start trading gold?
we've got you covered! get started! Opportunity for Buyers Ahead
the 50-day ema sits just below current trading, and it looks as if the market will see that as potential support. The 50-Day EMA sits at roughly $1858, and that could offer an opportunity for buyers to step back in. If we break down below there, then we open up the possibility of a move to the 200-Day EMA. Ultimately, there is a lot of noise underneath, and I do think it's only a matter of time before we see buyers try to come back into the market. That being said, I think it's a market that will end up being noisy to say the least.
If we break above the top of the 3 candlesticks , that would be rather bullish, and that could send the market much higher as it would show a lot of bullish pressure at that point, and it would also show the market as picking up momentum. I imagine there would be a lot of“fomo” at that point, and therefore the momentum could be quite brutal. In that scenario, I think we go looking toward the $1900 level initially, and then perhaps the $1950 level. Expect a lot of noisy behavior of the next couple of days as we had seen such a huge push lower that I would think a lot of people will be a bit concerned. Furthermore, you should probably keep in mind that those big red candles very rarely happen in a vacuum, so don't be surprised if we continue to see a bit of a push back every time we try to rally. Ultimately, this is a market that I think continues to be very difficult to handle, therefore you need to keep your position size reasonable due to the fact that the volatility could cause quite a bit of damage to your account if you are overexposed.
Ready to trade our gold forecast ? We've shortlisted the most trusted gold brokers in the industry for you.
MENAFN11022023000131011023ID1105558233
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.