Gold moved forward in its set path by $2 in a sideways week which is generally followed after a large movement. It remained rangebound stuck inbetween the support and the resistance in a not so lively week still exploring further highs which it was denied upon the closing. The week brings some cheer to the metal as it is marked by an important fundamental event which can again set big gains/losses in motion. A higher high and a higher low formation continues to garner bullishness for the metal.
On the chart –
Gold had a sober week with swings of $12 contained in the range defined by the support and resistance. Facts still pursue bulls as technically it has created a bullish candle with $1217 gaining as a better support for short term. We have 2 scenarios –
1. Gold’s positive closing keeps in track the trend, till $1217 is respected gold can move to $1228. If this is crossed it can head towards $1236. If this is taken out it can climb towards $1243 with $1251 being the next target.
2. Short trades keep coming as this is a choppy market. It can be well used for scalping till the flag breaks on the downside opening targets of $1185 and $1162.
Bullish view – Bulls had another week to their name as they tried to conquer $1228 again. Though not a big achievement this week, still gains suggest there is buying at the lows which is faced by a supply at the highs/resistances. Bulls can continue to expand their presence till the support is held as the tide is currently in their favor and minor things can prove to be of major importance given the direction its set upon after touching the channel low a week before.
Bearish view – Bears successfully pushed back the prices from the highs below $1228. For the bears, such activities are of prime importance as trend is not decided yet and gold remains choppy. For them to hand a striking blow, they need to break the channel/flag on the downside or push back the prices from the top of the channel/flag until then positional trades to be termed bearish in nature remains insignificant.
On larger terms, Gold continues to move in the flag/channel and prices are expected to be rangebound.
Possible trades are on both sides, gold can be bought above $1228 for the targets of $1236 and $1243 with a stop loss placed below $1217. Longer term target $1251.
Short trades come to play once the flag support is broken which can lead to $1185 and $1162 till then its a perfect scalping tool.
On the chart –
Gold had a sober week with swings of $12 contained in the range defined by the support and resistance. Facts still pursue bulls as technically it has created a bullish candle with $1217 gaining as a better support for short term. We have 2 scenarios –
1. Gold’s positive closing keeps in track the trend, till $1217 is respected gold can move to $1228. If this is crossed it can head towards $1236. If this is taken out it can climb towards $1243 with $1251 being the next target.
2. Short trades keep coming as this is a choppy market. It can be well used for scalping till the flag breaks on the downside opening targets of $1185 and $1162.
Bullish view – Bulls had another week to their name as they tried to conquer $1228 again. Though not a big achievement this week, still gains suggest there is buying at the lows which is faced by a supply at the highs/resistances. Bulls can continue to expand their presence till the support is held as the tide is currently in their favor and minor things can prove to be of major importance given the direction its set upon after touching the channel low a week before.
Bearish view – Bears successfully pushed back the prices from the highs below $1228. For the bears, such activities are of prime importance as trend is not decided yet and gold remains choppy. For them to hand a striking blow, they need to break the channel/flag on the downside or push back the prices from the top of the channel/flag until then positional trades to be termed bearish in nature remains insignificant.
On larger terms, Gold continues to move in the flag/channel and prices are expected to be rangebound.
Possible trades are on both sides, gold can be bought above $1228 for the targets of $1236 and $1243 with a stop loss placed below $1217. Longer term target $1251.
Short trades come to play once the flag support is broken which can lead to $1185 and $1162 till then its a perfect scalping tool.
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