Gold simmered and lost more than $10 in yet another rangebound week where both the marks – supports and resistances were held thus once again giving no clue on which side the break possibly could be. The moves were broadly on fundamental pressures which created opportunities for both bull and bear and this is now been happening for several weeks. Gold’s closing above the support yet again suggests the metal is in a grinding uptrend on larger picture. The yellow metal market has become a haven for traders whilst investors can just stick around patiently.
On the chart –
Gold lost over $10 in a strict ranged market where the highs are getting sold into aggressively. But all in all the metal is taking support every week which doesn’t hand it into the bearish grip. Fundamental pressures will remain even if North Korean crisis may have gone cold thus positioning the metal as a object for ranged volatility. We have 2 scenarios –
1. Gold’s closing above the support suggests the uptrend is not yet broken even if the highs are getting sold into. If the supports are held then it can climb till $1345. If this is crossed it can rise till $1362. If this big resistance area which it is acting as is conquered it can rally till $1374.
2. Short trades again remain muted in the given circumstance but if $1331 breaks it can slide to its support at $1317. And if this fails to hold it can fall towards $1308.
Bullish view – Bulls lost the way in the middle of the week as they fell prey in the hands of bears and lost the gains created along with a negative return for the week of over $10. But bulls are not out yet as once again the support was clinched onto. Bulls are slowly progressing in the weekly timeframe with see-saw moves which can help to ascertain that the metal is poised for a upside breakout soon.
There are no bearish views as the support was held.
On the larger terms, Gold is rangebound with price action between $1300-$1370 bracket. Need a breakout to get a clear signal of the trend.
Possible trades are on both sides, gold can be bought above $1337 for the targets of $1345 and $1362 with a stop loss placed below $1331. Longer term target $1374.
There are no short trades unless $1317 breaks, and if it does still its limited to $1308.
On the chart –
Gold lost over $10 in a strict ranged market where the highs are getting sold into aggressively. But all in all the metal is taking support every week which doesn’t hand it into the bearish grip. Fundamental pressures will remain even if North Korean crisis may have gone cold thus positioning the metal as a object for ranged volatility. We have 2 scenarios –
1. Gold’s closing above the support suggests the uptrend is not yet broken even if the highs are getting sold into. If the supports are held then it can climb till $1345. If this is crossed it can rise till $1362. If this big resistance area which it is acting as is conquered it can rally till $1374.
2. Short trades again remain muted in the given circumstance but if $1331 breaks it can slide to its support at $1317. And if this fails to hold it can fall towards $1308.
Bullish view – Bulls lost the way in the middle of the week as they fell prey in the hands of bears and lost the gains created along with a negative return for the week of over $10. But bulls are not out yet as once again the support was clinched onto. Bulls are slowly progressing in the weekly timeframe with see-saw moves which can help to ascertain that the metal is poised for a upside breakout soon.
There are no bearish views as the support was held.
On the larger terms, Gold is rangebound with price action between $1300-$1370 bracket. Need a breakout to get a clear signal of the trend.
Possible trades are on both sides, gold can be bought above $1337 for the targets of $1345 and $1362 with a stop loss placed below $1331. Longer term target $1374.
There are no short trades unless $1317 breaks, and if it does still its limited to $1308.
Comment:
Both the support and the resistance respected and as predicted it was a rangebound week yet again giving no clue for next week either.
