Gold continued it downtrend falling over $15 in the week creating fresh lows for the current year. This movement was based on the lack of demand even at lower levels as the dollar index supported the price action on the upside but gold failed to prosper on that opportunity. Sentiment overall remains weak since fundamentally some events are supportive of higher prices but technically its suffering from a major breakdown. Its largely expected that gold should find support at its trendline which sort of it already did in the past week but more confirmations are required to solidify any reversal occurring due to taking of support.
On the chart –
Gold remains a bear property as it is finding very hard to attract buyers who seem to have dumped the idea of this yellow metal. Globally many events are shaping up to bolster gold prices but its inability to capitalize on such oozes ample honey for the bears. We have 2 scenarios –
1. For any bullish moves it needs to confirm that the trendline is good enough to provide support thus signaling a reversal in the prices. Though price can move up in short term but its unlikely to change course unless the support is tested.
2. Gold has some more room to fall before it finds support and may climb higher. The prices can fall till $1243. If this is broken then its a really hard time for gold as prices can dip towards $1200s which will be extremely bearish.
There are no bullish views until gold finds support of the trendline.
Bearish view – Bears kept on adding gains on the downside as they were not getting much fight from the bulls. The scope for bear moves remains limited now but if the support is broken then it will be a very gloomy picture for gold and downside can continue.
On larger terms, gold stays firm in the bearish hands with prices expected to head lower towards the support area from where a reversal might be on the cards.
Possible trades are on both sides, gold can be sold below $1249 for the target of $1243 with a stop loss placed above $1254. If $1243 is broken then it can fall towards $1200.
There are no long trades until the price takes support, though bounces seen before can be treated as long opportunities.
On the chart –
Gold remains a bear property as it is finding very hard to attract buyers who seem to have dumped the idea of this yellow metal. Globally many events are shaping up to bolster gold prices but its inability to capitalize on such oozes ample honey for the bears. We have 2 scenarios –
1. For any bullish moves it needs to confirm that the trendline is good enough to provide support thus signaling a reversal in the prices. Though price can move up in short term but its unlikely to change course unless the support is tested.
2. Gold has some more room to fall before it finds support and may climb higher. The prices can fall till $1243. If this is broken then its a really hard time for gold as prices can dip towards $1200s which will be extremely bearish.
There are no bullish views until gold finds support of the trendline.
Bearish view – Bears kept on adding gains on the downside as they were not getting much fight from the bulls. The scope for bear moves remains limited now but if the support is broken then it will be a very gloomy picture for gold and downside can continue.
On larger terms, gold stays firm in the bearish hands with prices expected to head lower towards the support area from where a reversal might be on the cards.
Possible trades are on both sides, gold can be sold below $1249 for the target of $1243 with a stop loss placed above $1254. If $1243 is broken then it can fall towards $1200.
There are no long trades until the price takes support, though bounces seen before can be treated as long opportunities.
Comment:
Trade Active
Comment:
Short target met at $1243
Comment:
This weekly support of the trendline must hold, if it fails then we head lower towards $1200
Comment:
Long trades can be initiated above $1243 with stop loss placed below $1243
Comment:
Trade Active
Comment:
We have got a decent bounce from the support, now the support has to be held for the rest of the week for any reversal in trend.
Comment:
Targets on the long side remains the supports on the downside i.e $1260 and $1276
Comment:
First long target met at $1260