Gold had another bullish week gaining more than $6 closing above its resistance at $1228. Week was another higher high and higher low one where gold moved over $23 testing the crucial $1243 whilst taking support around $1220 before closing at $1233. The continuous formation of this pattern along with testing next crucial levels does showcase the strength gold is currently displaying even as the dollar index is failing to support high gold prices. Driving factor for gold is the looming uncertainty caused by the geopolitical events and upcoming elections.
On the chart –
Gold rose for the 4th consecutive week dismantling the bear phase which it was gripped in. As the key events draw close its highly anticipated that this asset class will attract more and the prices should go northwards amidst high volatility. We have 2 scenarios –
1. Gold had another strong week where it closed above the resistance of $1228, Now if this is held it can move higher to $1243. If this is taken out it can move till $1251. Once this is crossed it can rally till $1260.
2. Short trades doesnt suit the trend.
Bullish view – Bulls raged ahead for 4th straight week offsetting the earlier losses created in the span of 10 weeks before. Higher highs and higher lows continue to be formed which is giving more impetus to the bulls along with prevailing uncertainty. As expected $1243 was tested, now once this is taken out a huge move is on the cards as this will clear a big bottleneck. The key to amassing gains remains with the support being respected.
There lies no bearish view given the performance of the gold on the upside.
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 still remains against the trend, though they can be useful for scalping.
On the chart –
Gold rose for the 4th consecutive week dismantling the bear phase which it was gripped in. As the key events draw close its highly anticipated that this asset class will attract more and the prices should go northwards amidst high volatility. We have 2 scenarios –
1. Gold had another strong week where it closed above the resistance of $1228, Now if this is held it can move higher to $1243. If this is taken out it can move till $1251. Once this is crossed it can rally till $1260.
2. Short trades doesnt suit the trend.
Bullish view – Bulls raged ahead for 4th straight week offsetting the earlier losses created in the span of 10 weeks before. Higher highs and higher lows continue to be formed which is giving more impetus to the bulls along with prevailing uncertainty. As expected $1243 was tested, now once this is taken out a huge move is on the cards as this will clear a big bottleneck. The key to amassing gains remains with the support being respected.
There lies no bearish view given the performance of the gold on the upside.
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 still remains against the trend, though they can be useful for scalping.