Gold is seeing a clear downward momentum creating fresh lows for the year every week on closing basis. It suffered yet another such week where the price fell from the highs of $1230s to test the support before closing near the lows of the week at $1223. Even a weaker dollar index failed to garner any demand for the yellow metal as all rallies were sold into. With the trendline tested in the previous week and a failure to go above indicates loss of momentum and ability to go higher even in a favorable situation. Next week is full of activities again with Fed rate decision being the strongest influencer amongst all.
On the chart –
A clear breakdown is visible where previous support has been tested. Narrowing down to technicals, gold is in a oversold state but such is also not helping the metal to post any gains despite pullbacks happening every week which is used to sell into. With lower lows and lower highs getting created its very much clear that the pressure is on the sell side as no demand is emerging even at lower levels. We have 2 scenarios –
1. There are no possible long trades as the support is broken.
2. Gold is seeing a ride towards the lows of $1200s. Once the support at $1208 breaks it can fall lower. If this is taken out it can head towards its next crucial support at $1198. Once this is breached it can fall to $1185.
There is no bullish view as the support remains broken.
Bearish view – Bears are emerging victorious every week. With bias so strong on the downside along with technical support bears have their way to deal with the prices which they are registering at fresh lows every week on closing basis. Even global situations apt for a respite from the downfall is not aiding rather its making bears more ferocious at eroding the prices. Every rally is getting sold into, with this sort of momentum its very likely that the crucial support zone of $1196-$1200 will give way sooner than expected.
On larger terms, Gold is in a firm bear grip with prices expected to head lower.
Possible trades are on both sides, but largely on short side, gold can be sold below $1217 for the targets of $1208 and $1198 with a stop loss placed above $1237. Longer term target $1185.
There are no long trades until the price takes support, though bounces seen in the week can be regarded as long opportunities.
On the chart –
A clear breakdown is visible where previous support has been tested. Narrowing down to technicals, gold is in a oversold state but such is also not helping the metal to post any gains despite pullbacks happening every week which is used to sell into. With lower lows and lower highs getting created its very much clear that the pressure is on the sell side as no demand is emerging even at lower levels. We have 2 scenarios –
1. There are no possible long trades as the support is broken.
2. Gold is seeing a ride towards the lows of $1200s. Once the support at $1208 breaks it can fall lower. If this is taken out it can head towards its next crucial support at $1198. Once this is breached it can fall to $1185.
There is no bullish view as the support remains broken.
Bearish view – Bears are emerging victorious every week. With bias so strong on the downside along with technical support bears have their way to deal with the prices which they are registering at fresh lows every week on closing basis. Even global situations apt for a respite from the downfall is not aiding rather its making bears more ferocious at eroding the prices. Every rally is getting sold into, with this sort of momentum its very likely that the crucial support zone of $1196-$1200 will give way sooner than expected.
On larger terms, Gold is in a firm bear grip with prices expected to head lower.
Possible trades are on both sides, but largely on short side, gold can be sold below $1217 for the targets of $1208 and $1198 with a stop loss placed above $1237. Longer term target $1185.
There are no long trades until the price takes support, though bounces seen in the week can be regarded as long opportunities.
Comment:
Trade Active
Comment:
First short target met at $1208