Gold surged to fresh 52 week high in a big green week just shy of $1650 on back of a weaker dollar and the persisting coronavirus tensions. The price had a one way rally after the pattern was broken on the upside clearly indicating the market sentiment. The coronavirus issue, which in China has likely peaked out but has started a fresh crisis globally again which should keep the gold prices afloat and bears out. Gold is getting stronger on the technical front as another breakout has likely happened. To watch this week – G20 outcomes and other important economic data.
On the chart –
Gold made a new 52 week high as it gained $60 in second biggest week of 2020. The gains were driven largely by a weakening dollar with fresh virus issue adding fire to the fuel. Technicals continue to support higher prices even after such a rise as there is likely a breakout again. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1658. If this is crossed it can move towards $1672. And if this is taken out it can rally to $1685.
2. Short trades remain in exile as trend remains bullish.
Bullish view – Bulls had a thumping week as they registered a fresh 52 week high and conquered $1600 after nearly 7 years. The bullishness was mainly due to a soft dollar and a result of the pattern breakout which it had last week. Again there is likely a breakout on weekly timeframe which is extremely bullish so technicals remain strongly in favor of bulls while fundamentals continue to drag on. For the price to keep going higher it needs to defend the supports/lows.
Bearishness remains off the table.
On larger terms, Gold continues to remain bullish and prices are expected to head higher.
Possible trades are on both sides but mainly on upside, gold can be bought above $1650 for the targets of $1658 and $1672 with a stop loss placed below $1637. Longer term target $1685.
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.
On the chart –
Gold made a new 52 week high as it gained $60 in second biggest week of 2020. The gains were driven largely by a weakening dollar with fresh virus issue adding fire to the fuel. Technicals continue to support higher prices even after such a rise as there is likely a breakout again. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1658. If this is crossed it can move towards $1672. And if this is taken out it can rally to $1685.
2. Short trades remain in exile as trend remains bullish.
Bullish view – Bulls had a thumping week as they registered a fresh 52 week high and conquered $1600 after nearly 7 years. The bullishness was mainly due to a soft dollar and a result of the pattern breakout which it had last week. Again there is likely a breakout on weekly timeframe which is extremely bullish so technicals remain strongly in favor of bulls while fundamentals continue to drag on. For the price to keep going higher it needs to defend the supports/lows.
Bearishness remains off the table.
On larger terms, Gold continues to remain bullish and prices are expected to head higher.
Possible trades are on both sides but mainly on upside, gold can be bought above $1650 for the targets of $1658 and $1672 with a stop loss placed below $1637. Longer term target $1685.
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.
Trade active
Comment:
First long target met at $1658
Comment:
Second long target met at $1672
Comment:
Third long target met at $1685