Gold had volatility back as it dropped nearly $20 for the week. It never came out of the woods once the support at $1345 was breached and it remained under pressure for the week but managed to close above the 10 day moving average which is considered to be bullish in the bearish scenario as the support at $1331 got broken on closing basis. Weekly closing suggests a pause in bullish momentum but respect of the 10 day moving average suggests otherwise.
On the chart –
Gold had a down week after a having big upside which may be treated as consolidation of such high gains in a short span. But this volatility is not favoring either bears or bulls, one week up then down suggests confusion but the trend will remain bullish until $1300-$1308 is held. We have 2 scenarios –
1. Gold’s closing was not upto the mark to favor bulls but the respect of 10 day moving average on close did support the ailing bulls. If this support is held and if gold manages to cross $1331 then it can head higher to $1345. If this is crossed it can climb to $1358. If this is conquered it can move towards $1374.
2. There is a possible short trade as the support at $1331 was breached but still its limited to $1317.
Bullish view – Bulls lost some shine again as they failed to hold on to the support at $1331 on closing basis but the thing aiding them is the 10 day moving average which was yet again held and gold bounced from there. If this support is held and if $1331 is crossed bulls would win the majority again and can pave the way for upside again which may lead to a higher high and a higher close than it did in the week before.
Bearish view – Bears ousted the bulls during the close as they managed to close below the support of $1331 which may lead to further downside towards $1317.
On larger terms, Gold has turned neutral with a mild negative bias and the prices are expected to be volatile as there is lot of confusion.
Possible trades are on both sides but largely on long side, gold can be bought above $1341 for the targets of $1345 and $1358 with a stop loss placed below $1331. Longer term target $1374.
There are no short trades unless $1331 breaks, and if it does still its limited to $1317.
On the chart –
Gold had a down week after a having big upside which may be treated as consolidation of such high gains in a short span. But this volatility is not favoring either bears or bulls, one week up then down suggests confusion but the trend will remain bullish until $1300-$1308 is held. We have 2 scenarios –
1. Gold’s closing was not upto the mark to favor bulls but the respect of 10 day moving average on close did support the ailing bulls. If this support is held and if gold manages to cross $1331 then it can head higher to $1345. If this is crossed it can climb to $1358. If this is conquered it can move towards $1374.
2. There is a possible short trade as the support at $1331 was breached but still its limited to $1317.
Bullish view – Bulls lost some shine again as they failed to hold on to the support at $1331 on closing basis but the thing aiding them is the 10 day moving average which was yet again held and gold bounced from there. If this support is held and if $1331 is crossed bulls would win the majority again and can pave the way for upside again which may lead to a higher high and a higher close than it did in the week before.
Bearish view – Bears ousted the bulls during the close as they managed to close below the support of $1331 which may lead to further downside towards $1317.
On larger terms, Gold has turned neutral with a mild negative bias and the prices are expected to be volatile as there is lot of confusion.
Possible trades are on both sides but largely on long side, gold can be bought above $1341 for the targets of $1345 and $1358 with a stop loss placed below $1331. Longer term target $1374.
There are no short trades unless $1331 breaks, and if it does still its limited to $1317.
Comment:
Trade Acitve
Comment:
Trade Active
Comment:
Short scalp achieved from 1331 to 1317
Comment:
violation of 1317 may result in a downside to next support at 1307-1308, another possible bear trade in the bullish cycle
Comment:
Short scalp achieved from 1317 to 1307
Trade closed: target reached