Gold markets started to rally last week, but struggled going higher.
And in the action is forming a Shooting Star, thus suggesting that Gold is going to continue South towards its support at 1280 oz.
If Gold break below 1280, the market move South towards 1250, and then 1200. This is interesting considering that Gold had been strong for so long, but now it it looks weakened.
If Gold breaks above the Top of the weekly candle stick that would be a very Bullish sign for Gold Bugs.
But, with this pattern that does not look very likely based upon the price action last week.
This may be the week that the sentiment changed.
Another But, if Gold breaks to the Northside then is will move higher to the 1350 again in due course.
So, if you are Bullish Gold longer-term you probably need to be buying physical Gold as anything levered will be risky.
Note: In technical analysis, a shooting star is interpreted as a type of reversal pattern presaging a falling price. The Shooting Star looks exactly the same as the Inverted Hammer, but instead of being found in a downtrend it is found in an uptrend and thus has different implications.
Have a terrific week
Latest posts by Paul Ebeling (see all)
- Asia: Gold, USD, Crude Oil, Stocks & Commodities - June 27, 2019
- Fed’s Dovish Pivot Drives Gold’s Rally - June 27, 2019
- Bitcoin (BTC) Surges, is this Another ‘Climax’ Run? - June 27, 2019