Gold had a terrible outing falling $23 in the largest bar created in last 4 weeks. Things responsible for triggering a safe haven selloff was a stalemate reaction to Iran’s sanctions and the extremely important mid-term elections which turned into a biggest disappointment for traders as markets hardly moved given the gravity of the event. The Fed’s policy again dragged the metal further down as it kept on the talks of hiking rates. All in all the fundamental aspect was a big let down for the bulls but all is yet not lost as it closed above the support of $1208.
On the chart –
Gold suffered the worst of the last 3 months breaking many levels in a single week accredited to risk on trades which stole the limelight. This fall may also be considered as a retracement to the rise which it had in short duration. Holding on to supports around $1200 more crucial for the trend to remain intact and if held bounces cannot be ruled out. We have 2 scenarios –
1. Gold had a massive red bar but latched on to the support of $1208. If this is held it can go till $1217. Once this is crossed it can move till $1228. And if this is taken out it can test $1236 again.
2. Short trades definitely get some color but again it will be helpful for scalpers as positionally the bull trend remains intact. A break of $1198 conclusively will be the start of the bear run.
Bullish view – Bulls suffered a crushing defeat as influential factors failed to help the prices move higher. The buying interest has faded but not zeroed as $1208 was respected. For bulls to keep the trend intact, they have to defend the supports majorly $1198 followed by $1208.
Bearish view – Bears ruined the party by knocking off gains of last 3 weeks in a single bar. Every rise was getting sold into ferociously creating a sense of panic among the bulls. For bears to gain control over the trend they must takeout $1198 as once broken it will yield into a major flag breakdown in weekly timeframe.
On larger terms, Gold has turned into cautious bull and prices are expected to be sideways to higher as consolidation is expected after such a big fall.
Possible trades are on both sides, gold can be bought above $1212 for the targets of $1217 and $1228 with a stop loss placed below $1206. Longer term target $1236.
Short trades come back into the scene once $1198 gives way as it can lead to $1185 and $1162 till then its a perfect scalping tool.
On the chart –
Gold suffered the worst of the last 3 months breaking many levels in a single week accredited to risk on trades which stole the limelight. This fall may also be considered as a retracement to the rise which it had in short duration. Holding on to supports around $1200 more crucial for the trend to remain intact and if held bounces cannot be ruled out. We have 2 scenarios –
1. Gold had a massive red bar but latched on to the support of $1208. If this is held it can go till $1217. Once this is crossed it can move till $1228. And if this is taken out it can test $1236 again.
2. Short trades definitely get some color but again it will be helpful for scalpers as positionally the bull trend remains intact. A break of $1198 conclusively will be the start of the bear run.
Bullish view – Bulls suffered a crushing defeat as influential factors failed to help the prices move higher. The buying interest has faded but not zeroed as $1208 was respected. For bulls to keep the trend intact, they have to defend the supports majorly $1198 followed by $1208.
Bearish view – Bears ruined the party by knocking off gains of last 3 weeks in a single bar. Every rise was getting sold into ferociously creating a sense of panic among the bulls. For bears to gain control over the trend they must takeout $1198 as once broken it will yield into a major flag breakdown in weekly timeframe.
On larger terms, Gold has turned into cautious bull and prices are expected to be sideways to higher as consolidation is expected after such a big fall.
Possible trades are on both sides, gold can be bought above $1212 for the targets of $1217 and $1228 with a stop loss placed below $1206. Longer term target $1236.
Short trades come back into the scene once $1198 gives way as it can lead to $1185 and $1162 till then its a perfect scalping tool.
Comment:
$1198 holding, a bounce from lows expected as it tested the lower end of the flag in weekly timeframe.
Comment:
conservative bull target met $1208 from the dip bought at $1198
Comment:
Trade Active
Comment:
First long target met at $1217