Gold had a week of consolidation and back-testing the supports after rising over $50 from the lows. It was again a big week where it swung over $25 from lows to highs, where it went as low as $1212 testing its breakout region while hitting the highs of $1237 testing its resistance. Probably the nature of the coming week might have prompted such a move as its filled with important fundamental activities which can lead to sharp moves in the prices, the week can see a similar reaction mirroring the last week but on the upside. Being a volatile week ahead and things will turn either ways swiftly, its better to hedge with an option rather than using a stop loss as they can be wiped in minutes and prices can reverse again.
On the chart –
Gold remained unchanged in a big range week. The bar created does signal bullishness as lows were bought into rather quickly and the price closed well above the support of $1228. Now, till the support is held the prices can move higher. On the chart –
1. Gold had a swing towards the downside but the support was held at the end of the week. Till this holds it can move to $1243. If this is crossed it can go higher till $1251. Once this is crossed it can climb to $1260.
2. Short trades still remain at the bay given the support was held again but then it will be useful in the volatility. A sell on highs/resistances can be observed.
Bullish view – Bulls were again on top as the metal saw buying at lower levels leading it back above the support of $1228. With uncertainties taking the center stage in the week, bulls give themselves another good chance to create a new high after having back-tested the support in the previous week. For bulls to keep the pressure on, they need to take out the 200 dma on the weekly time frame along with protecting the supports.
There is no bearish view as price action still remains bullish.
On larger terms, Gold remains bullish and prices are expected to head higher.
Possible trades are on both sides, gold can be bought above $1236 for the targets of $1243 and $1251 with a stop loss placed below $1228. Longer term target $1260.
Short trades continues to remain muted but they can be useful for scalping in the volatility.
On the chart –
Gold remained unchanged in a big range week. The bar created does signal bullishness as lows were bought into rather quickly and the price closed well above the support of $1228. Now, till the support is held the prices can move higher. On the chart –
1. Gold had a swing towards the downside but the support was held at the end of the week. Till this holds it can move to $1243. If this is crossed it can go higher till $1251. Once this is crossed it can climb to $1260.
2. Short trades still remain at the bay given the support was held again but then it will be useful in the volatility. A sell on highs/resistances can be observed.
Bullish view – Bulls were again on top as the metal saw buying at lower levels leading it back above the support of $1228. With uncertainties taking the center stage in the week, bulls give themselves another good chance to create a new high after having back-tested the support in the previous week. For bulls to keep the pressure on, they need to take out the 200 dma on the weekly time frame along with protecting the supports.
There is no bearish view as price action still remains bullish.
On larger terms, Gold remains bullish and prices are expected to head higher.
Possible trades are on both sides, gold can be bought above $1236 for the targets of $1243 and $1251 with a stop loss placed below $1228. Longer term target $1260.
Short trades continues to remain muted but they can be useful for scalping in the volatility.