Gold had another tough week where it opened gap down over $10 and never really managed to go higher to fill the gap fully ending with cuts of over $5. Price action was mixed throughout the week where the metal tested the crucial support of the key $1300 mark and bounced back to close the week higher way above the support level of $1308. Technically a probable triple bottom seems to be in place on the weekly time frame which signifies a bottom may have formed in last week’s bearish dash towards the lows. But all said, the trading range of $1300-$1370 remains intact with the lower part of the range been tested suggesting again, we shall remain in it for sometime more and a breakout is yet again expected on the upside of the range.
On the chart –
Gold tested the solidarity of the $1300 mark and it was held firmly with buying emerging to push the prices higher back above the support and into the range as depicted by the trendlines. Such a pullback does ooze out bullishness with patterns giving more push the uptrend. We have 2 scenarios –
1. Gold’s rally from the lows suggest $1300 is not gonna go that easily and now that it has been tested again all the more probability of going higher has increased dramatically. If the support is held it can rise towards $1317. If this is crossed it can rally to its break even point at $1331. If this resistance area is crossed it can move towards $1345.
2. There are no short trades yet as the trading range was respected and supports held. Downside seems to remain capped at $1300 but if it breaks $1296 cannot be ruled out.
Bullish view – Bulls won this week even though it ended with cuts as they were able to defend the crucial $1300 mark yet again. Such price action which was illustrated in the week rings a bullish bell rather than a skeptical tone. The trading range was respected along with the supports should give bulls enough ammunition to take the prices higher.
Next 2 weeks are crucial for the metal as a key fundamental event is slated to take place and it will decide the fate of the gold.
There are no bearish views as the support was held.
On the larger terms, Gold continues to remain rangebound struck in the trading range with price action cradled between $1300-$1370. Need a breakout on either side to get a clear signal of the trend.
Possible trades are on both sides, gold can be bought above $1314 for the targets of $1317 and $1331 with a stop loss placed below $1308. Longer term target $1345.
There are no short trades unless $1308 breaks, and if it does still its limited to $1300-$1296.
On the chart –
Gold tested the solidarity of the $1300 mark and it was held firmly with buying emerging to push the prices higher back above the support and into the range as depicted by the trendlines. Such a pullback does ooze out bullishness with patterns giving more push the uptrend. We have 2 scenarios –
1. Gold’s rally from the lows suggest $1300 is not gonna go that easily and now that it has been tested again all the more probability of going higher has increased dramatically. If the support is held it can rise towards $1317. If this is crossed it can rally to its break even point at $1331. If this resistance area is crossed it can move towards $1345.
2. There are no short trades yet as the trading range was respected and supports held. Downside seems to remain capped at $1300 but if it breaks $1296 cannot be ruled out.
Bullish view – Bulls won this week even though it ended with cuts as they were able to defend the crucial $1300 mark yet again. Such price action which was illustrated in the week rings a bullish bell rather than a skeptical tone. The trading range was respected along with the supports should give bulls enough ammunition to take the prices higher.
Next 2 weeks are crucial for the metal as a key fundamental event is slated to take place and it will decide the fate of the gold.
There are no bearish views as the support was held.
On the larger terms, Gold continues to remain rangebound struck in the trading range with price action cradled between $1300-$1370. Need a breakout on either side to get a clear signal of the trend.
Possible trades are on both sides, gold can be bought above $1314 for the targets of $1317 and $1331 with a stop loss placed below $1308. Longer term target $1345.
There are no short trades unless $1308 breaks, and if it does still its limited to $1300-$1296.
Comment:
Trade Active
Comment:
First bullish target met at $1317
Trade closed: target reached