Gold saw a good correction after days of rangebound activity slipping nearly $30 for the week. Gold fell even lower towards $1244s breaking the support at $1248 but managed to close above it suggesting that this could act as an intermediate support. U.S tax reforms getting a green signal along with good weekly data pushed the metal to such lows. Gold is on the edge as never before since possibility of military conflict in Korean Peninsula is growing every passing day.
On the chart –
Gold broke through multiple supports falling nearly $30 but managed to close above the support of $1248. Such a fall could be possibly discounting the Fed’s activity next week. Gold has become sideways with movement to take place in any direction but it seems its has formed a short term base. We have 2 scenarios –
1. Gold saw a big correction after many weeks breaking technical supports as well as long term supports but held onto the support at $1248. If this is held it can head back higher to $1269. If this resistance is crossed then it can move to next supply area at $1284.
2. Gold fell hard taking out supports in a flash. If this downside momentum is to continue it can slide lower to $1235. If this support area is broken then it can further move lower to $1217.
Bullish view – Bulls took it on the chin as supports were unable to hold back the prices. But they can take consolation from the fact that the support at $1248 was respected and held even after it was breached. If bulls manage to hold this price point then its a move back into the greens.
Bearish view – Bears eroded the prices to lows of $1244 but failed to close below the support at $1248. They broke through an array of supports suggesting a change in mood of the investors when it comes to yellow metal. If this action is to continue then we might see more lower prices ahead.
On larger terms, Gold has turned sideways to bearish and the prices are expected to move in the favor of the direction.
Possible trades are on both sides, Gold can be bought above $1260 for the targets of $1269 and $1284 with a stop loss placed below $1248. Longer term target $1297.
Gold can be sold below $1244 for the targets of $1235 and $1217 with a stop loss placed above $1248.
On the chart –
Gold broke through multiple supports falling nearly $30 but managed to close above the support of $1248. Such a fall could be possibly discounting the Fed’s activity next week. Gold has become sideways with movement to take place in any direction but it seems its has formed a short term base. We have 2 scenarios –
1. Gold saw a big correction after many weeks breaking technical supports as well as long term supports but held onto the support at $1248. If this is held it can head back higher to $1269. If this resistance is crossed then it can move to next supply area at $1284.
2. Gold fell hard taking out supports in a flash. If this downside momentum is to continue it can slide lower to $1235. If this support area is broken then it can further move lower to $1217.
Bullish view – Bulls took it on the chin as supports were unable to hold back the prices. But they can take consolation from the fact that the support at $1248 was respected and held even after it was breached. If bulls manage to hold this price point then its a move back into the greens.
Bearish view – Bears eroded the prices to lows of $1244 but failed to close below the support at $1248. They broke through an array of supports suggesting a change in mood of the investors when it comes to yellow metal. If this action is to continue then we might see more lower prices ahead.
On larger terms, Gold has turned sideways to bearish and the prices are expected to move in the favor of the direction.
Possible trades are on both sides, Gold can be bought above $1260 for the targets of $1269 and $1284 with a stop loss placed below $1248. Longer term target $1297.
Gold can be sold below $1244 for the targets of $1235 and $1217 with a stop loss placed above $1248.