Friday, May 12, 2017 1:22:32 PM
Gold Price Forecast May 12, 2017, Technical Analysis
17 hours ago
Gold markets rallied during the session on Thursday, and even managed to break above the $1225 level, an area that has been resistive as of late. The most recent low is higher than the one before that, so it’s not much of a surprise but I still see a significant amount of resistance above that the market will have to climb to provide significant returns. Because of this, I believe that a short-term rally makes sense, but I also recognize that it’s only a matter of time before exhaustion returns to the marketplace, and if it does, this should signal that we can continue the downtrend. In fact, I still believe that the $1200 level will be far too attractive for traders, unless of course there is some type of headline shock from around the world as there are several moving pieces geopolitically that could scare the markets.
Complacency
Recently, we have seen a bit of complacency in the stock markets, and that has had many of the pundits wondering what it will take to shock the markets. The shock has been what’s been driving gold higher over the last several weeks, but recently it seems as if the market simply is becoming able to shrug off scary headlines. Because of this, I believe that we continue the complacency, and that should drive down the value of gold. On an exhaustive candle, especially near the $1230 level, I am comfortable selling. If we break above there, then the $1235 level will more than likely be targeted. If we break back below the $1225 level for more than a couple of hours, I also think that would be an opportunity to start shorting as well. While we could go long of gold, as I watch this chart it appears that we are running out of strength.
https://www.fxempire.com/forecasts/article/gold-price-forecast-may-12-2017-technical-analysis-407149
17 hours ago
Gold markets rallied during the session on Thursday, and even managed to break above the $1225 level, an area that has been resistive as of late. The most recent low is higher than the one before that, so it’s not much of a surprise but I still see a significant amount of resistance above that the market will have to climb to provide significant returns. Because of this, I believe that a short-term rally makes sense, but I also recognize that it’s only a matter of time before exhaustion returns to the marketplace, and if it does, this should signal that we can continue the downtrend. In fact, I still believe that the $1200 level will be far too attractive for traders, unless of course there is some type of headline shock from around the world as there are several moving pieces geopolitically that could scare the markets.
Complacency
Recently, we have seen a bit of complacency in the stock markets, and that has had many of the pundits wondering what it will take to shock the markets. The shock has been what’s been driving gold higher over the last several weeks, but recently it seems as if the market simply is becoming able to shrug off scary headlines. Because of this, I believe that we continue the complacency, and that should drive down the value of gold. On an exhaustive candle, especially near the $1230 level, I am comfortable selling. If we break above there, then the $1235 level will more than likely be targeted. If we break back below the $1225 level for more than a couple of hours, I also think that would be an opportunity to start shorting as well. While we could go long of gold, as I watch this chart it appears that we are running out of strength.
https://www.fxempire.com/forecasts/article/gold-price-forecast-may-12-2017-technical-analysis-407149
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
