Gold maintained its trend passing the week in a strict trading range where nothing could be stressed upon in terms of bullishness or bearishness. But again the long term trendline was respected which is considered to be a strong casing point for the bulls as the downside seems protected. Given the moves, it can be seen as a clear consolidation going on in gold as now 3 weeks have gone where the metal has been stuck in a range.
Next week is very crucial with lots of fundamental activity which should negotiate a directive move in gold possibly on the upside as the technicals suggest.
On the chart –
Gold is in a clear state of consolidation but a directive move is on the cards as a flurry of events are set to take place in the coming week, highlight being historic meeting between USA’s president Donald Trump and North Korean leader Kim Jong Un on 12th. The coming week will definitely provide a trend for the yellow metal given the importance of the events lined up. We have 2 scenarios –
1. Gold is trading in a range, for it to go higher it must cross the $1308 which has been acting as a stiff barrier from last 3 weeks. If this mark is crossed it can rally till $1317. If this is conquered it can move to its next resistance zone at $1331.
2. There are still no short trades coming alive as the support/trend line is being respected. But if it breaks a fall towards $1281 and lower cannot be ruled out.
Bullish view – Yet again nothing for the taking for either bulls or bears in the past week as the price remained sideways stuck in a tight range. Once again bulls emerged winners on the ground the support of the trendline was held and prices bounced back from there. This move for the 3rd time consecutively suggests bulls are in a strong position and a break on the upside is on the cards as downside seems protected.
There are no bearish views as the support was held.
On larger terms, Gold still remains sideways as no direction was found. Gold has been tight-locked between the support and the resistance and a break of either will give a clear picture of the trend.
Possible trades are on both sides, gold can be bought above $1308 for the targets of $1317 and $1331 with a stop loss placed below $1295.
There are no short trades unless $1281 breaks, and if it does still its limited to $1265.
Next week is very crucial with lots of fundamental activity which should negotiate a directive move in gold possibly on the upside as the technicals suggest.
On the chart –
Gold is in a clear state of consolidation but a directive move is on the cards as a flurry of events are set to take place in the coming week, highlight being historic meeting between USA’s president Donald Trump and North Korean leader Kim Jong Un on 12th. The coming week will definitely provide a trend for the yellow metal given the importance of the events lined up. We have 2 scenarios –
1. Gold is trading in a range, for it to go higher it must cross the $1308 which has been acting as a stiff barrier from last 3 weeks. If this mark is crossed it can rally till $1317. If this is conquered it can move to its next resistance zone at $1331.
2. There are still no short trades coming alive as the support/trend line is being respected. But if it breaks a fall towards $1281 and lower cannot be ruled out.
Bullish view – Yet again nothing for the taking for either bulls or bears in the past week as the price remained sideways stuck in a tight range. Once again bulls emerged winners on the ground the support of the trendline was held and prices bounced back from there. This move for the 3rd time consecutively suggests bulls are in a strong position and a break on the upside is on the cards as downside seems protected.
There are no bearish views as the support was held.
On larger terms, Gold still remains sideways as no direction was found. Gold has been tight-locked between the support and the resistance and a break of either will give a clear picture of the trend.
Possible trades are on both sides, gold can be bought above $1308 for the targets of $1317 and $1331 with a stop loss placed below $1295.
There are no short trades unless $1281 breaks, and if it does still its limited to $1265.
Comment:
Trend Line got broken on the downside suggesting more bearish momentum ahead