Lingrid | GOLD weeky MARKET preivew

During the week, the gold market tried to go higher, but then fell below the psychological at 2000 level. The market may go down to the support level of 1950. The price failed to break the level and go higher, which tells us that there are no buyers who are willing to buy at the current price. We can see that the move up has been difficult, through the resistance between 2000 - 2005 levels. What does that tell us?

For the price to go higher it must either move down to attract new buyers or move sideways to gather liquidity. In my opinion, for a price to go higher it must first release to the downside and then the upside. On the other hand, we may see a more ranging market because if you look at the last daily candlestick, price formed a unideal long-tail bar right at the resistance zone. However, the current price action suggests that gold is likely to fluctuate for some time before a new trend is confirmed. Weakness at the resistance, in addition to this divergence suggests that a pullback in price is more likely, unless of course economic data does the opposite.

Traders, if you like this idea or have an opinion on this, post in the comments. I'd be happy to 👩‍💻.

Comment:

The market rejected the resistance zone, then bounced of it. The market fell below the 1990 level after forming 2 legged pullback. If the price returns to this resistance grabbing liquidity above then price action might continue moving down towards the next support level at 1970 and potentialy 1950. On the 1H timeframe price reacted to the 1990 resistance several times; most likely it will the push lower again. My goal is the support level at 1970