Gold swung nearly $25 in the week testing its support and resistance as it continued to trade in the defined range of $1185-$1215 before closing with gains of $12 for the week. Gold closed above $1200 after a month even on account of a higher dollar index which suggests there might be more gains to come once the range gets broken on the upside. Another bullish week went by giving fresh lead to the bulls.
On the chart –
Gold remained in its range but gave a positive signal by closing above the crucial $1200. Though it was again a directionless week but plenty to take away from it as it formed a higher high and a higher low formation giving a deeper edge to the bulls apart from the significantly stronger closing. We have 2 scenarios –
1. Gold’s closing above $1200 speaks plenty itself. If it manages to defend the support it can head towards $1208. If this is taken out it can move to $1217. Once this is conquered it can rally till $1228.
2. There are no short trades in the offing as the support was respected. They come online once $1185 breaks for targets of $1162 and $1123.
Bullish view – Bull’s show of strength was quite visible as the closing was above $1200 since the support was defended perfectly. Gold is trying to gain momentum on the bullish side steadily but can only be confirmed once it breaks out of the range. Stronger moves are expected once $1215 is taken out as it been a hurdle for past many weeks.
Bearishness fails to lure as the the support was held. They become attractive once $1185 breaks.
On larger terms, Gold still remains sideways but with a mild bullish bias. Prices remain stuck in the range and a break on either side will decide the direction.
Possible trades are on both sides, gold can be bought above $1208 for the targets of $1217 and $1228 with a stop loss placed below $1195. Longer term target $1243.
Short trades go live once $1185 breaches, if it does then it can be sold for the targets of $1162 and $1123.
On the chart –
Gold remained in its range but gave a positive signal by closing above the crucial $1200. Though it was again a directionless week but plenty to take away from it as it formed a higher high and a higher low formation giving a deeper edge to the bulls apart from the significantly stronger closing. We have 2 scenarios –
1. Gold’s closing above $1200 speaks plenty itself. If it manages to defend the support it can head towards $1208. If this is taken out it can move to $1217. Once this is conquered it can rally till $1228.
2. There are no short trades in the offing as the support was respected. They come online once $1185 breaks for targets of $1162 and $1123.
Bullish view – Bull’s show of strength was quite visible as the closing was above $1200 since the support was defended perfectly. Gold is trying to gain momentum on the bullish side steadily but can only be confirmed once it breaks out of the range. Stronger moves are expected once $1215 is taken out as it been a hurdle for past many weeks.
Bearishness fails to lure as the the support was held. They become attractive once $1185 breaks.
On larger terms, Gold still remains sideways but with a mild bullish bias. Prices remain stuck in the range and a break on either side will decide the direction.
Possible trades are on both sides, gold can be bought above $1208 for the targets of $1217 and $1228 with a stop loss placed below $1195. Longer term target $1243.
Short trades go live once $1185 breaches, if it does then it can be sold for the targets of $1162 and $1123.
Comment:
A long trade can be initiated from the range lows at $1185 with strict stops
Comment:
Trade Active
Comment:
First long target met at $1198
Comment:
Second long target met at $1208
Comment:
Third long target met at $1217
Trade closed: target reached