Gold faced another down week in a rangebound trade hitting both the support and the resistance before ending with cuts of nearly $9. Such trades suggest confusion over the trajectory of the metal price with lack of news flow. But again the support was held and there seems to be some panic to begin concerning North Korea over its ability to hit U.S mainland with nuclear missiles which could aid the prices to move upwards.
On the chart –
Gold bounced between support and resistance showcasing confusion and lack of direction for the prices. If this continues it may go on trading in this range but the range expanded from $20 to $30 suggesting expansion which can happen on either side but preferably on the upside. We have 2 scenarios –
1. Gold rejected the top at $1297 second time and receded back to test the support which was held onto, generally the third attempt is successful so if the support is held then it may be able to cross the level in next attempt. If $1270 is held, gold can see upside till $1284 where it faces a cloud of sellers. If this is crossed then it can move higher till $1297. If this ever crucial resistance is crossed gold would break higher into $1300s to $1308.
2. There are no short trades unless support at $1270 is broken but again its limited to $1260 where the 50 day moving average might support the price.
Bullish view – Bulls lost the week but did not vanish, they were able to defend $1270 indicating buying at lower levels. Some respite for bulls may be coming from news flow from Korean peninsula which will definitely aid the prices to surge higher. If they are able to hold the supports the prices are expected to go higher in coming days/weeks.
There is no bearish view to support the downside as its very limited and only applicable if supports are broken.
On larger terms, Gold has turned sideways and the prices are expected to be rangebound unless a direction is decided.
Possible trades are on both sides but largely on long side, Gold can be bought above $1284 for the targets of $1297 and $1308 with a stop loss placed below $1270. Longer term target $1317.
There is no positional short trade unless $1270 breaks, and if it does still its limited to $1260.
On the chart –
Gold bounced between support and resistance showcasing confusion and lack of direction for the prices. If this continues it may go on trading in this range but the range expanded from $20 to $30 suggesting expansion which can happen on either side but preferably on the upside. We have 2 scenarios –
1. Gold rejected the top at $1297 second time and receded back to test the support which was held onto, generally the third attempt is successful so if the support is held then it may be able to cross the level in next attempt. If $1270 is held, gold can see upside till $1284 where it faces a cloud of sellers. If this is crossed then it can move higher till $1297. If this ever crucial resistance is crossed gold would break higher into $1300s to $1308.
2. There are no short trades unless support at $1270 is broken but again its limited to $1260 where the 50 day moving average might support the price.
Bullish view – Bulls lost the week but did not vanish, they were able to defend $1270 indicating buying at lower levels. Some respite for bulls may be coming from news flow from Korean peninsula which will definitely aid the prices to surge higher. If they are able to hold the supports the prices are expected to go higher in coming days/weeks.
There is no bearish view to support the downside as its very limited and only applicable if supports are broken.
On larger terms, Gold has turned sideways and the prices are expected to be rangebound unless a direction is decided.
Possible trades are on both sides but largely on long side, Gold can be bought above $1284 for the targets of $1297 and $1308 with a stop loss placed below $1270. Longer term target $1317.
There is no positional short trade unless $1270 breaks, and if it does still its limited to $1260.
Comment:
Trade Active
Comment:
Bearish target met at $1260