Gold made yet another high before retreating $10 for the week as consolidation and profit booking over took the major sentiment which is often seen after big weekly gains/losses and also highly likely given the time of the year which now draws close to the end sparking holiday mood. The coming week holds the last important event of the year and possibly the trend defining one as all eyes are set upon the U.S Fed’s monetary policy decision and on its future path of rate hikes which will sway both dollar and gold. For gold, it has continued to tread in the bullish path as closings continue to favor it as well as a technical breakout from weekly cup and handle pattern which presses bullishness into the next financial year as well.
On the chart –
Gold remained in the flag but continued to gain strength on the bullish side as the breakout level from the cup and handle pattern was respected with closing above the support of $1236. With this technical breakout, the bigger future course can be sighted upon which is the possible break of the flag on the upside. We have 2 scenarios –
1. Gold’s closing above the support of $1236 does showcase the relative strength of the trend, till the support is held it can rise to $1243. If this is crossed it can rally till $1251. And if this is taken out it can hurry towards $1260 and next $1273.
2. Short trades remain equally important as gold has not yet breached the flag and prices shall remain sideways, the tops/resistances can give a good opportunity for this kind of trade.
Bullish view – Bulls still have lots to rejoice from a week of negative return. A new high as well as the testing of support of the breakout all goes to laurels of the bulls and infact even deepen the trend in their favor. The week, an important one and also the last full working week for this fiscal year can cement the place of bulls going into the next year. Till the support is held and patterns respected all is set for the bulls for a newer high.
Bearish view – Bears tried to invalidate the pattern but were unsuccessful thus making them look weaker in the coming days/weeks and restricting to only scalp trades. For bears to find any momentum they need to break the bullish patterns so formed.
On larger terms, Gold still continues to move inside the flag/channel even after having a bullish breakout. Prices are expected to be rangebound unless it breaks out.
Possible trades are on both sides, gold can be bought above $1243 for the targets of $1251 and $1260 with a stop loss placed below $1236. Longer term target $1273.
Short trades come to play once the flag top is reached which can see reversal to $1251 and $1243.
On the chart –
Gold remained in the flag but continued to gain strength on the bullish side as the breakout level from the cup and handle pattern was respected with closing above the support of $1236. With this technical breakout, the bigger future course can be sighted upon which is the possible break of the flag on the upside. We have 2 scenarios –
1. Gold’s closing above the support of $1236 does showcase the relative strength of the trend, till the support is held it can rise to $1243. If this is crossed it can rally till $1251. And if this is taken out it can hurry towards $1260 and next $1273.
2. Short trades remain equally important as gold has not yet breached the flag and prices shall remain sideways, the tops/resistances can give a good opportunity for this kind of trade.
Bullish view – Bulls still have lots to rejoice from a week of negative return. A new high as well as the testing of support of the breakout all goes to laurels of the bulls and infact even deepen the trend in their favor. The week, an important one and also the last full working week for this fiscal year can cement the place of bulls going into the next year. Till the support is held and patterns respected all is set for the bulls for a newer high.
Bearish view – Bears tried to invalidate the pattern but were unsuccessful thus making them look weaker in the coming days/weeks and restricting to only scalp trades. For bears to find any momentum they need to break the bullish patterns so formed.
On larger terms, Gold still continues to move inside the flag/channel even after having a bullish breakout. Prices are expected to be rangebound unless it breaks out.
Possible trades are on both sides, gold can be bought above $1243 for the targets of $1251 and $1260 with a stop loss placed below $1236. Longer term target $1273.
Short trades come to play once the flag top is reached which can see reversal to $1251 and $1243.
Comment:
Trade Active
Comment:
First long target met at $1251
Comment:
Second long target met at $1260
Comment:
Price now trading near the top of the flag, a breakout shall unleash a big bull and rejection can see continued sideways trade