Gold continued to register gains with another green candle closing well above the resistance of the black diagonal trendline confirming the change in the trend to bullish after a retest of the breakout which it had in the week before. With U.S Fed chairperson Powell sounding dovish even after another rate cut does provide a further push to the price of gold as the dollar weakness continues. Fundamentals are still not fully convincing for bullishness but technicals have turned in the favor of bulls after a month. To watch this week – Fedspeak and other important data.
On the chart –
Gold has turned bullish again as it closed above the key resistance which now should remain a key support on weekly timeframe. Still the air remains foggy as gold was unable to take out its high registered a week before which can result in further consolidation if not negative returns but the trend change is visible. We have 2 scenarios –
1. Gold closed above the support, till its held it can move to $1527. If this is crossed it can rally till $1541. And if this is taken out it can climb to $1554.
2. Bearishness seems to have filtered out again excepting scalp trades unless the trend changes back.
Bullish view – Bulls claimed back the trend after a gap of a month with substantial force as they reconquered the resistance of black diagonal trendline. The trend had started turning in favor of bulls since last week when the breakout happened but it got confirmed after a successful retest completing the course of trend change. Technicals are favoring the bulls but fundamentals are not that cooperative excepting the events which has and may continue to weaken dollar. For bulls to remain trend bearers they need to protect the supports as well as make new highs.
Bears failed to keep the trend in their favor making their bets unproductive.
On larger terms, Gold has turned bullish and prices are expected to head higher
Possible trades are on both sides but mainly on upside, gold can be bought above $1519 for the targets of $1527 and $1541 with a stop loss placed below $1508. Longer term target $1554.
Dips towards support (and breakout region) can be used to create longs for the above mentioned targets.
Shorts can be useful for scalp trades only.
On the chart –
Gold has turned bullish again as it closed above the key resistance which now should remain a key support on weekly timeframe. Still the air remains foggy as gold was unable to take out its high registered a week before which can result in further consolidation if not negative returns but the trend change is visible. We have 2 scenarios –
1. Gold closed above the support, till its held it can move to $1527. If this is crossed it can rally till $1541. And if this is taken out it can climb to $1554.
2. Bearishness seems to have filtered out again excepting scalp trades unless the trend changes back.
Bullish view – Bulls claimed back the trend after a gap of a month with substantial force as they reconquered the resistance of black diagonal trendline. The trend had started turning in favor of bulls since last week when the breakout happened but it got confirmed after a successful retest completing the course of trend change. Technicals are favoring the bulls but fundamentals are not that cooperative excepting the events which has and may continue to weaken dollar. For bulls to remain trend bearers they need to protect the supports as well as make new highs.
Bears failed to keep the trend in their favor making their bets unproductive.
On larger terms, Gold has turned bullish and prices are expected to head higher
Possible trades are on both sides but mainly on upside, gold can be bought above $1519 for the targets of $1527 and $1541 with a stop loss placed below $1508. Longer term target $1554.
Dips towards support (and breakout region) can be used to create longs for the above mentioned targets.
Shorts can be useful for scalp trades only.