Gold saw a correction of over $16 which was ensued with a gap down opening on account of less than expected impact of hurricane Irma and also tensions in Korean Peninsula saw some easing. A gap down below the crucial support of $1342 firmed selling as gold was unable to recover the opening loss. Upbeat data from America also created sluggishness in gold prices causing them to fall more. Gold saw a rise at the end of the week on account of yet another missile flying out from Korean Peninsula but was unable to cling onto the gains as bears used this opportunity to further add short positions. Gold still remains in bullish grip as support of $1317 was not broken on closing basis which may trigger buying yet again.
On the chart –
Gold saw incremental selling after the large gap down below the support of $1342 which tested the key support at $1317 on the downside as expected but closed above it. Such a closing may again lead to gains and a possible retest of $1342 if the prices hold above $1317. Technically gold continues to remain bullish till $1300 holds and sideways movement is expected until $1342 is taken out. We have 2 scenarios –
1. Gold took support at $1317 and bounced back which suggests buying at lower levels. If such strength remains gold may rise back to the key level of $1342 which now acts as a resistance. If this level is taken out gold may go higher to $1356. Now if this price point is crossed gold may climb higher to $1375 where it will complete the pattern and is a very good resistance on the chart.
2. There are no short trades yet again unless support of $1317 is broken. If this support is broken then gold may fall to $1302.
Bullish view – Bulls took a breather as price action was commanded by the bears. Though bulls raged back into the game when they didn’t allow the support at $1317 to be broken on closing basis. Such a move still breathes bullishness in prices. Prices are expected to yet again test $1342 if the support is held, bulls are fundamentally favored due to global tensions regarding Korean peninsula failing to fade out rather its escalating with every passing day.
There is no bearish perspective unless support is broken.
On larger terms, Gold remains sideways to bullish and the prices are expected to trade in a range.
Possible trades are on both sides but largely on the long side, Gold can be bought above $1331 for the targets of $1342 and $1356 with a stop loss placed below $1317. Longer term target $1375.
Gold can be sold below $1317 for the target of $1302 with a stop loss placed above $1331.
On the chart –
Gold saw incremental selling after the large gap down below the support of $1342 which tested the key support at $1317 on the downside as expected but closed above it. Such a closing may again lead to gains and a possible retest of $1342 if the prices hold above $1317. Technically gold continues to remain bullish till $1300 holds and sideways movement is expected until $1342 is taken out. We have 2 scenarios –
1. Gold took support at $1317 and bounced back which suggests buying at lower levels. If such strength remains gold may rise back to the key level of $1342 which now acts as a resistance. If this level is taken out gold may go higher to $1356. Now if this price point is crossed gold may climb higher to $1375 where it will complete the pattern and is a very good resistance on the chart.
2. There are no short trades yet again unless support of $1317 is broken. If this support is broken then gold may fall to $1302.
Bullish view – Bulls took a breather as price action was commanded by the bears. Though bulls raged back into the game when they didn’t allow the support at $1317 to be broken on closing basis. Such a move still breathes bullishness in prices. Prices are expected to yet again test $1342 if the support is held, bulls are fundamentally favored due to global tensions regarding Korean peninsula failing to fade out rather its escalating with every passing day.
There is no bearish perspective unless support is broken.
On larger terms, Gold remains sideways to bullish and the prices are expected to trade in a range.
Possible trades are on both sides but largely on the long side, Gold can be bought above $1331 for the targets of $1342 and $1356 with a stop loss placed below $1317. Longer term target $1375.
Gold can be sold below $1317 for the target of $1302 with a stop loss placed above $1331.
Comment:
Trade Active
Comment:
Short target of $1302 met