Gold finally saw the breakout as it rose more than $25 for the week nearly eliminating the loss seen in 2018. The move, which was again a vertical one was so ferocious that it even took out the high of previous week invalidating the double top pattern without any resistance. Such a kind of price action maybe due to the truncated week as volume remains thin in this point of the year but nonetheless it created the stage for the next year which starts with an invigorating bullishness.
On the chart –
Gold now technically is having multiple breakouts along with continued formation of higher highs and higher lows pattern which signals clear trend of bull. With gold having broken through the flag its staged to rise higher. The 3 key technical patterns –
1. Gold is continuing to build the gains on account of the cup and handle breakout at $1233-$1235 which was tested and confirmed in the weeks before.
2. Gold finally managed to break the flag on the upside which is extremely bullish marking a significant shift in trend to bullishness from sideways which it had been long into.
3. The long term trendline has been broken on the upside giving more impetus for price to move forward in an imposing manner.
The chart yet offers 2 scenarios but its compelling on the long side with short trades a very much of least interest given the movement and momentum of gold.
Gold closed above all points of breakout, if the support is held it can go till $1284. If this is taken out it can move till $1296. And if this is taken out it can rally till $1308.
On larger terms, Gold has turned bullish and prices are expected to head higher.
Possible trades are on both sides, gold can be bought above $1284 for the targets of $1296 and $1308 with a stop loss placed below $1267.
Short trades can be only useful for scalping as they are against the trend.
Happy New Year !!
On the chart –
Gold now technically is having multiple breakouts along with continued formation of higher highs and higher lows pattern which signals clear trend of bull. With gold having broken through the flag its staged to rise higher. The 3 key technical patterns –
1. Gold is continuing to build the gains on account of the cup and handle breakout at $1233-$1235 which was tested and confirmed in the weeks before.
2. Gold finally managed to break the flag on the upside which is extremely bullish marking a significant shift in trend to bullishness from sideways which it had been long into.
3. The long term trendline has been broken on the upside giving more impetus for price to move forward in an imposing manner.
The chart yet offers 2 scenarios but its compelling on the long side with short trades a very much of least interest given the movement and momentum of gold.
Gold closed above all points of breakout, if the support is held it can go till $1284. If this is taken out it can move till $1296. And if this is taken out it can rally till $1308.
On larger terms, Gold has turned bullish and prices are expected to head higher.
Possible trades are on both sides, gold can be bought above $1284 for the targets of $1296 and $1308 with a stop loss placed below $1267.
Short trades can be only useful for scalping as they are against the trend.
Happy New Year !!
Comment:
Trade Active
Comment:
First long target met at $1296
Comment:
Gold back at support can be bought with very low risk