Gold markets were very volatile most of the week. According to market analyst Christopher Lewis, we saw a breakout attempt failed during the Friday session after US NFP data fell below expectation. The analyst says that the market was very volatile between Monday and Thursday, but in the Friday session, we got the candlestick tail. After all, the number of jobs largely missed, causing the U.S. dollar to plunge sharply. However cryptocoin.com As we also reported, the gold market started to decline again with the recovery of the US dollar and the negative correlation.
Analyst Christopher Lewis expects a big fight in the $1,680 area
According to analyst Christopher Lewis, the 50-week EMA sits just above and will of course attract a certain amount of attention. The analyst says to take a look at the candlestick first and reminds that “it is a hammer, so there is a certain amount of support just below it”. Christopher Lewis continues his analysis as follows:
If we break below this level, the market is likely to face the $1,680 level, which is an important area more than once. So if we get to that area, I think it could be a big challenge for the market in the long run. If it breaks down from there, there will definitely be a lot of selling pressure in the market and I’m guessing we’ll be looking at least towards the 200-week EMA.
On the other hand, if we break above the 50-week EMA, we will most likely look at the $1,835 level. Christopher Lewis states that this level is an area that has been subject to resistance more than once, so it makes a certain sense that it can offer a target, and if we go up from there, then it becomes more of a “take and hold” type of situation.
Gold prices technical analysis
Market analyst David Becker states that resistance in gold prices is seen near the 50-day moving average at $1,779, while support is seen at $1,753 near the 10-year moving average, pointing to the following technical levels:
The short-term momentum is positive as the fast stochastic recently formed a cross-bought signal. Medium-term momentum has turned positive as the MACD (moving average convergence divergence) index creates a cross-bought signal. This happens when the MACD line (12-day moving average minus the 26-day moving average) crosses above the MACD signal line (9-day moving average of the MACD line). The MACD histogram is printing in positive territory with an upward sloping trajectory pointing to higher prices.
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