Gold continued its uptrend as it rose over $8 for the week. The price action was a breakaway style one with $1217 taken out by a gap and this gap now becomes a key support. Uncertainties and rising political drama should fuel the demand for the yellow metal as Mid-Term elections are just few days away. Odds are extremely high for gold to create new highs every week till the support is respected.
On the chart –
Gold had a breakaway move since the first trade of the week which created a gap which now acts as a support for prices moving ahead. This is particularly a very important one as for gold to continue further up this has to be respected. Pattern of higher highs and higher lows is clearly evident which suggests bullishness is set to continue. We have 2 scenarios –
1. Gold had a breakaway gap and now $1217 acts as a big support. Till its held it can move up till $1236. If thats taken out it can head higher to test the crucial $1243. Once this is conquered then it can rise till $1260.
2. Short trades unfortunately are cornered by continuous breakouts happening on the bullish side. Scalping trades can be the effective trades on the short side till a change in trend is observed.
Bullish view – Bulls continue to storm ahead as they create new highs every week. The trend seems to have finally changed to bullish as patterns and price movement are giving the exact picture of the sentiment. With key levels being taken out by force is a sign that bulls have taken control and this should definitely grow in size in coming days. For bulls to keep accelerating they need to protect the newly formed supports as well as original ones which decided the the fate of the trend.
There is no bearish view as price action is too bullish for the moment.
On larger terms, Gold continues to be bullish and prices are expected to head higher.
Possible trades are on both sides, gold can be bought above $1228 for the targets of $1236 and $1243 with a stop loss placed below $1217. Longer term target $1260. Short trades doesnt suit the trend, they can be useful for scalping.
On the chart –
Gold had a breakaway move since the first trade of the week which created a gap which now acts as a support for prices moving ahead. This is particularly a very important one as for gold to continue further up this has to be respected. Pattern of higher highs and higher lows is clearly evident which suggests bullishness is set to continue. We have 2 scenarios –
1. Gold had a breakaway gap and now $1217 acts as a big support. Till its held it can move up till $1236. If thats taken out it can head higher to test the crucial $1243. Once this is conquered then it can rise till $1260.
2. Short trades unfortunately are cornered by continuous breakouts happening on the bullish side. Scalping trades can be the effective trades on the short side till a change in trend is observed.
Bullish view – Bulls continue to storm ahead as they create new highs every week. The trend seems to have finally changed to bullish as patterns and price movement are giving the exact picture of the sentiment. With key levels being taken out by force is a sign that bulls have taken control and this should definitely grow in size in coming days. For bulls to keep accelerating they need to protect the newly formed supports as well as original ones which decided the the fate of the trend.
There is no bearish view as price action is too bullish for the moment.
On larger terms, Gold continues to be bullish and prices are expected to head higher.
Possible trades are on both sides, gold can be bought above $1228 for the targets of $1236 and $1243 with a stop loss placed below $1217. Longer term target $1260. Short trades doesnt suit the trend, they can be useful for scalping.
Comment:
Trade Active
Comment:
First long target met at $1236
Comment:
Second long target met at $1243