Gold has gone back and forth during the early hours on Wednesday, as the $2,300 level continues on for support. At this point, it looks like gold is trying to find its footing and therefore bounce again. After all, we had a nasty sell off a couple of days ago, but we’ve seen a turnaround during the session on Tuesday.
If we can break above the top of the hammer candlestick from the Tuesday session, then we could go looking to the $2,400 level. If we break down below the candlestick from the Tuesday session, then I think you’ve got a situation where the 50 day EMA or even the $2,200 level comes into the picture to start offering support. Longer term, I think we still continue higher, perhaps going to the $2,500 level.
