Gold faced another sideways week which was encapsulated between the support and the resistance. The range was bigger than the earlier week with price swinging $18 inbetween highs and lows accredited to the nature of the week which was full of important fundamental activities from which gold is to take cues in short/mid term. Important takeaway remains much similar, it closed above the support conclusively while the demand was visible at the lower level and supply at higher. Such kind of movement can be widely anticipated as overall the metal is pinned to a channel/flag.
On the chart –
Gold had a no show kind of week where the range of the swings was deeper but the actual outcome was negligible. Still it sports a trend as the ongoing bullishness is preserved as the support was held. We have 2 scenarios –
1. Gold held on to $1217 yet again, till its respected it can move higher to $1228. If this is crossed it can go till $1236. And if this is taken out it can rally till $1243 with $1251 being the next target.
2. Short trades does favor the current setup in which the prices are moving but mainly through scalping as positional ones come live once the flag is broken on the downside for targets of $1185 and $1162.
Bullish view – Bulls didnt had much to rejoice excepting the fact the support was held onto and demand was visible at lower levels. For the trend to remain bullish supports need to be held along with newer highs being achieved as more assistance could be lent to gold via a move in dollar index given the outcome of a crucial fundamental event.
Bearish view – Bears too couldn’t take anything out of the week as their show was interrupted by an upsurge in prices. The consoling factor being a lower high and lower low formation and yet again defending the resistance. For bears to put up a scene they need to either break the flag on the downside or take the prices off highs from the top of the flag.
On larger terms, Gold remains inside the flag/channel and prices are expected to be rangebound.
Possible trades are on both sides, gold can be bought above $1228 for the targets of $1236 and $1243 with a stop loss placed below $1217. Longer term target $1251.
Short trades come to play once the flag support is broken which can lead to $1185 and $1162 till then its a perfect scalping tool.
On the chart –
Gold had a no show kind of week where the range of the swings was deeper but the actual outcome was negligible. Still it sports a trend as the ongoing bullishness is preserved as the support was held. We have 2 scenarios –
1. Gold held on to $1217 yet again, till its respected it can move higher to $1228. If this is crossed it can go till $1236. And if this is taken out it can rally till $1243 with $1251 being the next target.
2. Short trades does favor the current setup in which the prices are moving but mainly through scalping as positional ones come live once the flag is broken on the downside for targets of $1185 and $1162.
Bullish view – Bulls didnt had much to rejoice excepting the fact the support was held onto and demand was visible at lower levels. For the trend to remain bullish supports need to be held along with newer highs being achieved as more assistance could be lent to gold via a move in dollar index given the outcome of a crucial fundamental event.
Bearish view – Bears too couldn’t take anything out of the week as their show was interrupted by an upsurge in prices. The consoling factor being a lower high and lower low formation and yet again defending the resistance. For bears to put up a scene they need to either break the flag on the downside or take the prices off highs from the top of the flag.
On larger terms, Gold remains inside the flag/channel and prices are expected to be rangebound.
Possible trades are on both sides, gold can be bought above $1228 for the targets of $1236 and $1243 with a stop loss placed below $1217. Longer term target $1251.
Short trades come to play once the flag support is broken which can lead to $1185 and $1162 till then its a perfect scalping tool.
Comment:
Trade Active
Comment:
First long target met at $1236
Comment:
Second long target met at $1243