Gold resumed its consolidation as it remained range bound cradled between support and resistance. Gold had a relatively smaller range week after a long time as it moved only $22 as the market awaits the U.S Fed’s interest rate decision on 31st July which should further cement the direction. Gold remains bullish as slowdown fears and geopolitical tensions continue to bite and technically the big breakout continues to unfold. Next week’s important event – U.S Fed Interest Rate Decision.
On the chart –
Gold consolidated after the 3 week breakout as the most awaited event of Fed’s interest rate decision remains just days away. Both bull and bear had their share in the week as indecisiveness and lack of positions due to the event overshadowed the directional move. All in all gold remains in strong uptrend as the price action remains favorable towards the bulls. We have 2 scenarios –
1. Gold closed above the support, till this is held it can move towards $1420. If this is crossed it can rally back till $1434. If this is taken out it can spring higher to $1448 and $1464.
Short trades still remain unconvincing as its against the trend excepting scalp trades.
Bullish view – Bulls had a muted week as the price saw a correction of $7 but again the support was held which led to the reversal in the price which closed fairly higher from the lows. This suggests buying at the lower levels which supports the bullishness. Technicals and fundamentals both favor higher gold prices, for gold to continue moving higher it needs to defend the supports.
Bearishness still remains off the table.
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 $1420 for the targets of $1434 and $1448 with a stop loss placed below $1408. Longer term target $1464.
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 consolidated after the 3 week breakout as the most awaited event of Fed’s interest rate decision remains just days away. Both bull and bear had their share in the week as indecisiveness and lack of positions due to the event overshadowed the directional move. All in all gold remains in strong uptrend as the price action remains favorable towards the bulls. We have 2 scenarios –
1. Gold closed above the support, till this is held it can move towards $1420. If this is crossed it can rally back till $1434. If this is taken out it can spring higher to $1448 and $1464.
Short trades still remain unconvincing as its against the trend excepting scalp trades.
Bullish view – Bulls had a muted week as the price saw a correction of $7 but again the support was held which led to the reversal in the price which closed fairly higher from the lows. This suggests buying at the lower levels which supports the bullishness. Technicals and fundamentals both favor higher gold prices, for gold to continue moving higher it needs to defend the supports.
Bearishness still remains off the table.
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 $1420 for the targets of $1434 and $1448 with a stop loss placed below $1408. Longer term target $1464.
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.
Trade active
Comment:
First long target met at $1434
Comment:
Second long target met at $1448