By FXEmpire.com
The gold markets had a fairly substantial rally during the Wednesday session as risk appetite came back. The recent tight consolidation range has been busted, but we’re still within the larger consolidation area that has kept prices in check for the entirety of the summer.
The $1640 level above is the top of this consolidation area, and as such we are comfortable going long once we are above that level. On the downside, the 1540 level is support, but there is also massive support at the $1500 level as well. Because of this, we are more apt to buy this market then sell it at this point in time.
The candle for the day on Wednesday of course is very bullish looking considering the recent action, and as such we feel that the real risk is to the upside. With this in mind, we are looking for the breakdown which to buy a gold market.
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Originally posted here
