Gold remained in consolidation as it registered another 52 week high but failed to capitalize on the gains ending with cuts of $16 for the week. The downfall from the highs was attributed to easing of trade tensions between U.S and China as they confirmed resumption of talks in October along with better than expected data which allayed recessionary fears to some extent. Even after such a big move the trend remains bullish as gold closed at the crucial support area and global situations though looking a bit improved hasn’t changed with economic slowdown continuing to haunt. To watch next week – ECB meeting and other important data.
On the chart –
Gold continued to consolidate as it swung more than $50 from the high to the low without any change in direction owing to constant bull-bear battle near the highs. Volatility remains at the peak as global situation remains largely unchanged due to mixed data keeping the lid on any significant improvements. We have 2 scenarios –
1. Gold closed at the support, till this is held it can move to $1510. If this is crossed it can rally till $1527. And if this is taken out it can move back to $1541.
2. Short trades trying to make a comeback will only be efficient if gold breaks through the support. It can be sold below $1495 for targets of $1480 and $1464.
Bullish view – Bulls made another attempt registering a new high but failed again indicating selling pressure near the high but all is not lost as the key support region remains defended and till its held a reversal in prices can be seen again as fundamentals remain in favor of bulls. A double bottom will likely push up the prices allowing the resumption of rally towards $1800.
Bearish view – Bears finally had a say as they pulled back the prices again from the highs but to change the trend in favor they need to break through crucial supports.
On larger terms, Gold remains bullish and prices are expected to head higher.
Possible trades are on both sides but mainly on upside, gold can be bought above $1510 for the targets of $1527 and $1541 with a stop loss placed below $1499. Longer term target $1554.
Dips towards support (and breakout region) can be used to create longs for the above mentioned targets.
Shorts can be useful for scalp trades only.
On the chart –
Gold continued to consolidate as it swung more than $50 from the high to the low without any change in direction owing to constant bull-bear battle near the highs. Volatility remains at the peak as global situation remains largely unchanged due to mixed data keeping the lid on any significant improvements. We have 2 scenarios –
1. Gold closed at the support, till this is held it can move to $1510. If this is crossed it can rally till $1527. And if this is taken out it can move back to $1541.
2. Short trades trying to make a comeback will only be efficient if gold breaks through the support. It can be sold below $1495 for targets of $1480 and $1464.
Bullish view – Bulls made another attempt registering a new high but failed again indicating selling pressure near the high but all is not lost as the key support region remains defended and till its held a reversal in prices can be seen again as fundamentals remain in favor of bulls. A double bottom will likely push up the prices allowing the resumption of rally towards $1800.
Bearish view – Bears finally had a say as they pulled back the prices again from the highs but to change the trend in favor they need to break through crucial supports.
On larger terms, Gold remains bullish and prices are expected to head higher.
Possible trades are on both sides but mainly on upside, gold can be bought above $1510 for the targets of $1527 and $1541 with a stop loss placed below $1499. Longer term target $1554.
Dips towards support (and breakout region) can be used to create longs for the above mentioned targets.
Shorts can be useful for scalp trades only.
Comment:
Support of diagonal black line holding which continues the bullish case
Comment:
"Buy on dips" remains the best trading style until a total trend reversal
Comment:
Moving Average support near $1482
Trade active
Comment:
First long target met at $1510