Gold markets initially fell during the week, but reversed and showed signs of life again. By doing so, the gold market appears to be trying to recover, according to market analyst Christopher Lewis. We have prepared the gold technical analysis of Christopher Lewis for our readers.
“A bounce for gold, more likely than recovery”
Gold markets initially fell this week, as you can see from the news on Cryptokoin.com However, it also found enough support near the $1,850 level to bounce back and show signs of life. Therefore, the market seems to be trying to re-enter the consolidation area we were in before.
It’s also worth noting that the weekly candlestick is a hammer, the same shape we saw the previous week. This typically means that a bounce is more likely than a recovery, and a break above the $1,905 level could confirm this.
“It’s only a matter of time before we make a bigger move”
On the other hand, if we get to the bottom of the hammer, we’ll get 1,800 after that. We are likely to look at the dollar level. The $1,800 level is a big, round, psychologically important figure and an area where there has been a lot of bullish pressure before.
So I think it’s more likely to hold as support than to hold. That said, I think it’s probably just a matter of time before we make a bigger decision. So I think it’s only a matter of time before we make a bigger move.
At this point, I’m all for the upside, but I also need to keep an open mind as there is a lot of noise in various markets and therefore gold will continue to be volatile going forward. That being the case, keep your position size reasonable and recognize that caution is the better part of courage at this point.
Meanwhile, on Wednesday, the US April Consumer Price Index (CPI) data will be released. On an annual basis, CPI is expected to fall to 8.4% from 8.5% in March. Core CPI, which excludes volatile food and energy prices, is expected to decline sharply from 6.5% to 6%.
