- Last week’s candle was a scary one for bulls.
- Levels to watch have remained the same since the beginning of the year.
- Violent swing in trading activity in gold sends fear through the market.
We saw Gold reverse violently last week as the all-time high was broken for the first time in three years. Bulls were hoping for continued buying pressure once the significant level was broken but what we saw instead was an incredible reversal.
Gold was trading as high as $2,150 per ounce last week before swiftly reversing and closing at a price of $2,014. The weekly candle is a scary-looking one that will likely spread a lot of fear in the gold market. Bulls will be hoping that there will be enough uncertainty in the macroeconomic environment to create enough buying pressure to make last week’s close irrelevant. Bears will likely take advantage of last week’s close and sell short, setting stops above the new all-time high.
Levels To Watch
$1,930 is the first support level that we can watch. The second is at $1,831 if prices continue to fall further. We may see a slowdown in overall trading activity as we move into the end of the year now so practicing patience and waiting to see how the market reacts to last week’s close could be the best play.