Gold rose more than $30 in the past week after bouncing off its support area at $1308. Such a move was on expected lines if the support was held and the size of the move was due to the low volatility seen in the previous weeks which was showing signs of accumulation and it sort of mirrored a catapult kind of move as the prices were held back and consolidating within a range then fired up breaking through the range. Gold had a good closing after a month as it managed to conquer $1345 on closing basis which is a bullish sign.
On the chart –
Gold had a big green week aided by a falling dollar index and key support levels being respected. Fundamentally the Fed outcome also helped the yellow metal as it turned the falling dollar index even weaker. We have 2 scenarios –
1. Gold’s closing above the $1345 mark suggests expansion in the range which it was caught in from last 3 weeks. If this is held then gold can move towards the resistance area of $1358. If this is taken out it can rise to fresh 52 week highs of $1374.
2. There are no short trades unless $1345 breaks and overall trend reverses, if it happens still it is limited to $1331.
Bullish view – Bulls were on a tear after 4 weeks of calmness as the supports were held which pressured the prices on the higher side. The low dollar index also favored the bulls who were able to break the range on the upside by having a good closing for the week suggesting a fresh 52 week high is on the offing. It was another big green bar which got created after a month nearly mirroring the amount of gains of the previous upmove. If this momentum is continued and if the fundamentals keep on supporting then gold can rise towards $1400 sooner than expected.
There is no bearish views as the range got broken on the upside which is favoring uptrend.
On larger terms, Gold has turned bullish as the range got broken on the upside suggesting more uptrend ahead.
Possible trades are on both sides but largely on long side, gold can be bought above $1350 for the targets of $1358 and $1374 with a stop loss placed below $1342.
Short trades are not the flavor but comes into the picture once $1345 breaks but still its limited to $1331.
On the chart –
Gold had a big green week aided by a falling dollar index and key support levels being respected. Fundamentally the Fed outcome also helped the yellow metal as it turned the falling dollar index even weaker. We have 2 scenarios –
1. Gold’s closing above the $1345 mark suggests expansion in the range which it was caught in from last 3 weeks. If this is held then gold can move towards the resistance area of $1358. If this is taken out it can rise to fresh 52 week highs of $1374.
2. There are no short trades unless $1345 breaks and overall trend reverses, if it happens still it is limited to $1331.
Bullish view – Bulls were on a tear after 4 weeks of calmness as the supports were held which pressured the prices on the higher side. The low dollar index also favored the bulls who were able to break the range on the upside by having a good closing for the week suggesting a fresh 52 week high is on the offing. It was another big green bar which got created after a month nearly mirroring the amount of gains of the previous upmove. If this momentum is continued and if the fundamentals keep on supporting then gold can rise towards $1400 sooner than expected.
There is no bearish views as the range got broken on the upside which is favoring uptrend.
On larger terms, Gold has turned bullish as the range got broken on the upside suggesting more uptrend ahead.
Possible trades are on both sides but largely on long side, gold can be bought above $1350 for the targets of $1358 and $1374 with a stop loss placed below $1342.
Short trades are not the flavor but comes into the picture once $1345 breaks but still its limited to $1331.
Comment:
Trade Active
Comment:
Short target met at $1331