Gold consolidated for third straight week yet again ending above the support with minor gains of less than $2 in a holiday thinned week. As we enter into the final month of the year, much will depend upon year end positioning rather than outright technical or fundamentals though in December important events lined up starting from Election in U.K to fresh tariffs getting imposed in the 16 month long trade war between U.S and China which could dominate the large portion of the month before the adjustments start.
With the mood already getting subtle large moves should not be expected with the trend remaining in favor of bulls as last week’s candle further imposed the possible move ahead. To watch this week – Important economic data.
On the chart –
Gold likely formed a reversal candle after 2 weeks of consolidation which can be seen as a casing point for prolonged bullishness. With lack of any big news the economic data should take the center stage as fundamentals which remains uncertain. Technicals keeps on suggesting continued bullish trend as the support of red diagonal trendline was defended again keeping bullish bets intact. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1480. If this is crossed it can move towards $1495. And if this is taken out it can rally to $1510.
2. Given the candle formation of last week it might be fair to single out the bottom formation which keeps bears out of the race except scalp trades. If the support breaks it can move to $1434 and $1420.
Bullish view – Bulls came back strongly after a weak start to the week ending with minor gains defending the support again. With uncertainties rising again due to trade wars and the U.K elections, fundamentals might be shifting in bulls favor. Technicals continue to support bullish bets but bulls need to defend the supports as well as aim for new highs to mend the trend fully in favor of them.
Bearish view – Bears tried hard to keep the prices below the support but failed again suggesting their time is running out at a good speed. For bears to stay in the fray they need to break the crucial price points.
On larger terms, Gold remains sideways and prices are expected to be rangebound until a direction is confirmed.
Possible trades are on both sides but mainly on upside, gold can be bought above $1465 for the targets of $1480 and $1495 with a stop loss placed below $1456. Longer term target $1510.
Dips towards support (and breakout region) can be used to create longs for the above mentioned targets.
Shorts can be useful for scalp trades only until the direction is decided.
With the mood already getting subtle large moves should not be expected with the trend remaining in favor of bulls as last week’s candle further imposed the possible move ahead. To watch this week – Important economic data.
On the chart –
Gold likely formed a reversal candle after 2 weeks of consolidation which can be seen as a casing point for prolonged bullishness. With lack of any big news the economic data should take the center stage as fundamentals which remains uncertain. Technicals keeps on suggesting continued bullish trend as the support of red diagonal trendline was defended again keeping bullish bets intact. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1480. If this is crossed it can move towards $1495. And if this is taken out it can rally to $1510.
2. Given the candle formation of last week it might be fair to single out the bottom formation which keeps bears out of the race except scalp trades. If the support breaks it can move to $1434 and $1420.
Bullish view – Bulls came back strongly after a weak start to the week ending with minor gains defending the support again. With uncertainties rising again due to trade wars and the U.K elections, fundamentals might be shifting in bulls favor. Technicals continue to support bullish bets but bulls need to defend the supports as well as aim for new highs to mend the trend fully in favor of them.
Bearish view – Bears tried hard to keep the prices below the support but failed again suggesting their time is running out at a good speed. For bears to stay in the fray they need to break the crucial price points.
On larger terms, Gold remains sideways and prices are expected to be rangebound until a direction is confirmed.
Possible trades are on both sides but mainly on upside, gold can be bought above $1465 for the targets of $1480 and $1495 with a stop loss placed below $1456. Longer term target $1510.
Dips towards support (and breakout region) can be used to create longs for the above mentioned targets.
Shorts can be useful for scalp trades only until the direction is decided.
Trade active
Comment:
First long target met at $1480