Gold consolidated after a down week in a range bound trade cradled between support and resistance due to lack of big-mover events. As global tensions are softening along with an increased appetite for riskier assets, gold remains in bear trend as it again took resistance at the black diagonal trendline and also failed to even touch $1500 adding further downside pressure. To watch this week – ECB Interest Rate Decision and other important data.
On the chart –
Gold remained in bearish territory as it consolidated below $1500 after many weeks clearly indicating the stark change in the trend. With events unfolding in a positive manner and risk on sentiment back on the table in full swing gold should continue its downwards journey allowing a retest of the bullish breakout. We have 2 scenarios –
1. Bullish bets remain unyielding as the support remains broken excepting scalp trades.
2. Gold closed below the support, till its defended it can move to $1480. If this is taken out it can slide to $1464. And if this is breached it can fall to $1448.
Bulls remain on sidelines as the trend remains bearish.
Bearish view – Bears tried to pull the price down to a lower low but failed, still the week belongs to them as they defended the black diagonal trendline on the upside which now acts as a major support for bears. Both technicals and fundamentals lend strong support to bears now excepting an uncertainty revolving orderly Brexit which again gets voted in the start of the week and if passed it will give an additional impetus to downside momentum which should likely end after a retest of bullish breakout.
On larger terms, Gold continues to remain bearish and prices are expected to head lower.
Possible trades are on both sides but mainly on downside, gold can be sold below $1480 for the targets of $1464 and $1448 with a stop loss placed above $1491. Longer term target $1434.
Dips towards support (and breakdown region) can be used to create shorts for the above mentioned targets.
Longs can be useful for scalp trades only until the breakdown gets invalidated.
On the chart –
Gold remained in bearish territory as it consolidated below $1500 after many weeks clearly indicating the stark change in the trend. With events unfolding in a positive manner and risk on sentiment back on the table in full swing gold should continue its downwards journey allowing a retest of the bullish breakout. We have 2 scenarios –
1. Bullish bets remain unyielding as the support remains broken excepting scalp trades.
2. Gold closed below the support, till its defended it can move to $1480. If this is taken out it can slide to $1464. And if this is breached it can fall to $1448.
Bulls remain on sidelines as the trend remains bearish.
Bearish view – Bears tried to pull the price down to a lower low but failed, still the week belongs to them as they defended the black diagonal trendline on the upside which now acts as a major support for bears. Both technicals and fundamentals lend strong support to bears now excepting an uncertainty revolving orderly Brexit which again gets voted in the start of the week and if passed it will give an additional impetus to downside momentum which should likely end after a retest of bullish breakout.
On larger terms, Gold continues to remain bearish and prices are expected to head lower.
Possible trades are on both sides but mainly on downside, gold can be sold below $1480 for the targets of $1464 and $1448 with a stop loss placed above $1491. Longer term target $1434.
Dips towards support (and breakdown region) can be used to create shorts for the above mentioned targets.
Longs can be useful for scalp trades only until the breakdown gets invalidated.