Gold continued its uptrend by making a new high well above $1260 before settling for gains of over $17 for the week closing above the psychological $1250. The gains were fueled by geopolitical and political events mainly coming from U.S as investors fled from riskier assets. With the coming week being a truncated one on account of Christmas holidays and also being the last trading week of the year nothing big is expected on either side. Gold unfortunately remained in its flag/channel which invites further sideways movement though the sentiment yet remains bullish given the factors playing out around the globe.
On the chart –
Gold made higher highs and higher lows formation as it marched towards fresh highs giving signals of continued bullishness and a close above $1250 also helped in the cause. With gold testing the breakout level at $1233-$1235 and rebounding all things stand mostly clear regarding the trend. We have 2 scenarios –
1. Gold ‘s closing above $1251 suggests the trend is intact, till the support is held it can move higher towards $1260. If this is crossed it can go till $1273. And if this is taken out it can rally till $1284.
2. Short trades still hold importance as gold is yet trading inside the flag which gives ample opportunity for shorting the tops/resistances.
Bullish view – Bulls after a week of consolidation marched further higher as they tested the top of the flag/range along with a closing above the resistance and psychological mark of $1250. It was bullish from day one of the week as the support was tested on that day itself and the price saw an almost vertical rally from the lows. Bulls shall continue to enjoy the ride as fundamentals and technicals remain in their favor. Till the support is held and the patterns respected newer highs remains on the cards.
Bearish view – Bears had a point to make as they eroded the price from highs not allowing the breakout. For bears, to keep them alive they need to hold the price inside the flag for any signs of reversal.
On larger terms, Gold continues to trade inside the flag/channel. Prices are expected to be rangebound unless it breaks out.
Possible trades are on both sides, gold can be bought above $1260 for the targets of $1273 and $1284 with a stop loss placed below $1251.
Short trades come to play once the flag top is reached which can see reversal to $1260 and $1251.
On the chart –
Gold made higher highs and higher lows formation as it marched towards fresh highs giving signals of continued bullishness and a close above $1250 also helped in the cause. With gold testing the breakout level at $1233-$1235 and rebounding all things stand mostly clear regarding the trend. We have 2 scenarios –
1. Gold ‘s closing above $1251 suggests the trend is intact, till the support is held it can move higher towards $1260. If this is crossed it can go till $1273. And if this is taken out it can rally till $1284.
2. Short trades still hold importance as gold is yet trading inside the flag which gives ample opportunity for shorting the tops/resistances.
Bullish view – Bulls after a week of consolidation marched further higher as they tested the top of the flag/range along with a closing above the resistance and psychological mark of $1250. It was bullish from day one of the week as the support was tested on that day itself and the price saw an almost vertical rally from the lows. Bulls shall continue to enjoy the ride as fundamentals and technicals remain in their favor. Till the support is held and the patterns respected newer highs remains on the cards.
Bearish view – Bears had a point to make as they eroded the price from highs not allowing the breakout. For bears, to keep them alive they need to hold the price inside the flag for any signs of reversal.
On larger terms, Gold continues to trade inside the flag/channel. Prices are expected to be rangebound unless it breaks out.
Possible trades are on both sides, gold can be bought above $1260 for the targets of $1273 and $1284 with a stop loss placed below $1251.
Short trades come to play once the flag top is reached which can see reversal to $1260 and $1251.
Comment:
Trade Active
Comment:
First long target met at $1273