Gold resumed its uptrend after 3 weeks breaking out of the consolidation with a gap up opening for the week and continued to trade above the highs of the previous week. The yellow metal saw a gain of $7 in yet another big range week of $26 which was stretching on the upside on account of the risk off trade as crucial fundamental events takes the center stage this week. Gold had a good closing which indicates more upside ahead.
On the chart –
Gold finally managed to break free out of the range it had been stuck for over 10 days propelled by a weak dollar and classic risk off trades as globally the economies are staring into recession along with key fundamental events to take place in the coming week. Technically gold broke out of the consolidation and managed to stay above the earlier high indicating a fresh leg up ahead. We have 2 scenarios –
1. Gold’s closing above the key levels suggest more upside, till the support is held it can rally back to $1341. If this is crossed it can march towards $1356.
2. Short trades fail to entice as the nature of breakouts happening only offer bullish bets. Nevertheless, it can be useful for scalping.
Bullish view – Bulls won the battle again as the price broke out on the upside with strong momentum. The candle formed is extremely bullish as the gap up was sustained as the price continued to trade above earlier highs all week long even testing new highs which still remains to be conquered on closing basis. Gold was aided by a weaker dollar as well as the coming events led to an increased demand due to risk off trades and uncertainty it brings to the table. Another breakout on upside keeps the trend intact and till the support is held newer highs cannot be ruled out.
Bearish views remains nullified as breakouts are happening on upside.
On larger terms, Gold resumes bullishness and prices are expected to head higher.
Possible trades are on both sides, gold can be bought above $1328 for the targets of $1341 and $1356 with a stop loss placed below $1318.
Short trades still remains missing and only come live once the support is broken.
On the chart –
Gold finally managed to break free out of the range it had been stuck for over 10 days propelled by a weak dollar and classic risk off trades as globally the economies are staring into recession along with key fundamental events to take place in the coming week. Technically gold broke out of the consolidation and managed to stay above the earlier high indicating a fresh leg up ahead. We have 2 scenarios –
1. Gold’s closing above the key levels suggest more upside, till the support is held it can rally back to $1341. If this is crossed it can march towards $1356.
2. Short trades fail to entice as the nature of breakouts happening only offer bullish bets. Nevertheless, it can be useful for scalping.
Bullish view – Bulls won the battle again as the price broke out on the upside with strong momentum. The candle formed is extremely bullish as the gap up was sustained as the price continued to trade above earlier highs all week long even testing new highs which still remains to be conquered on closing basis. Gold was aided by a weaker dollar as well as the coming events led to an increased demand due to risk off trades and uncertainty it brings to the table. Another breakout on upside keeps the trend intact and till the support is held newer highs cannot be ruled out.
Bearish views remains nullified as breakouts are happening on upside.
On larger terms, Gold resumes bullishness and prices are expected to head higher.
Possible trades are on both sides, gold can be bought above $1328 for the targets of $1341 and $1356 with a stop loss placed below $1318.
Short trades still remains missing and only come live once the support is broken.
Comment:
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