Gold prices rose significantly during the week as we continue to see a lot of volatility, according to market analyst Christopher Lewis. However, the analyst states that the market is giving back some of the early gains of the week and draws the weekly technical picture of the yellow metal. We have prepared Christopher Lewis’ analysis for our readers.
“Shooting star candlestick indicates maybe we will pull back a little”
As you can follow from cryptokoin.com news, gold markets are important at the beginning of the trading week. rally to break significantly higher. But it has reversed some of that gain to show an unimpressive candlestick.
The shooting star candlestick indicates that we may retreat a bit. Which makes sense considering we were shooting straight into the air. As a result, you should also pay close attention to the 50-Week EMA, an area that long-term investors are also interested in.
“If it goes below this level, gold prices could drop pretty drastically”
If we break below the candlestick bottom, it’s likely to $1,810 We can go as far. The market is looking a bit sluggish right now and even if we try to build some grounding, it wouldn’t be a big surprise to see a pullback to attract more buyers.
It is worth noting that we have a major trend line on the chart near the $1,800 level. If gold prices drop below this level, then we could most likely be knocked down pretty hard.
“If it breaks above the candlestick, it will be a bullish sign for gold prices”
On the other hand, if we break above the candlestick last week, this it would be a bullish sign and would definitely get a lot of attention. At this point, the market is likely to face the $1,900 level.
If gold prices rise above the $1,900 level, there is a possibility of a return to the $2,000 level. Pay close attention to the bond market, falling yields will help gold rally.
Meanwhile, the US May jobs report, which is important data for gold prices as it affects the Fed’s stance, will be released on Friday. Expectations are for Non-Farm Payrolls (NFP) to increase by 310,000, after an increase of 428,000 in April.
