Gold withstood another volatile week with prices swinging in both directions. Point to note, it gained $10 in such an environment and the most importantly closed above the crucial $1300 mark back again after one week’s fallout from the much hyped range. Such an activity might be purely technical in nature given the prices were outside the bollinger band and a pullback was on the cards, though the price took support at the trendline and retraced back which could be telling another story. If the support is held again it might be an indication of bottoming out and a price reversal.
On the chart –
Gold had a rocky week with prices testing both the support and the resistance but couldn’t manage to latch on the either. The key for last week’s close was the closing above $1300 mark which may speak plenty itself. If the support line is held then green bars cannot be ruled out. We have 2 scenarios –
1. Gold’s closing above $1300 suggests trend may have changed. If the support line is held then it can go higher till $1308. If this is crossed it can rally till $1317. And if this is conquered it can move towards the crucial mark at $1331.
2. Alternatively if gold falls below $1295 provided this was a trap for the bulls we can revisit lower levels again at $1281. If this is broken it will clearly indicate a massive shift in trend and lows of $1265 can be touched and even lower.
Bullish view – Bulls had a lot to take from this week, only did they not manage to post gains but conquered the crucial $1300 mark again. Such a closing is clearly bullish and if the support line is held then a move upwards is definitely on. The last week’s move could mean we might have created a bottom and new highs are on the cards as the ascending triangle formation was respected and the prices retraced back after hitting the support (the lowest part of the triangle), a breakout above $1370 will confirm the pattern’s relevance till then it will be in a range.
There are no bearish views as the support was held.
On larger terms, gold remains sideways as no concrete direction was found except for the fact that it managed to close above $1300 and got back into the trading range of $1300-$1370.
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 $1298.
There are no short trades unless $1295 breaks, and if it does still its limited to $1281.
On the chart –
Gold had a rocky week with prices testing both the support and the resistance but couldn’t manage to latch on the either. The key for last week’s close was the closing above $1300 mark which may speak plenty itself. If the support line is held then green bars cannot be ruled out. We have 2 scenarios –
1. Gold’s closing above $1300 suggests trend may have changed. If the support line is held then it can go higher till $1308. If this is crossed it can rally till $1317. And if this is conquered it can move towards the crucial mark at $1331.
2. Alternatively if gold falls below $1295 provided this was a trap for the bulls we can revisit lower levels again at $1281. If this is broken it will clearly indicate a massive shift in trend and lows of $1265 can be touched and even lower.
Bullish view – Bulls had a lot to take from this week, only did they not manage to post gains but conquered the crucial $1300 mark again. Such a closing is clearly bullish and if the support line is held then a move upwards is definitely on. The last week’s move could mean we might have created a bottom and new highs are on the cards as the ascending triangle formation was respected and the prices retraced back after hitting the support (the lowest part of the triangle), a breakout above $1370 will confirm the pattern’s relevance till then it will be in a range.
There are no bearish views as the support was held.
On larger terms, gold remains sideways as no concrete direction was found except for the fact that it managed to close above $1300 and got back into the trading range of $1300-$1370.
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 $1298.
There are no short trades unless $1295 breaks, and if it does still its limited to $1281.