Gold closed at a six year high after gaining more than $57 in a monumental week which spanned nearly $80 in terms of range making it the biggest week since November 2016. Gold not only crossed $1400, it broke through multiple technical patterns which makes it supremely bullish. Fundamentally this breakout happened due to geopolitical concerns arising from U.S – Iran tensions which crept up another level when a drone was taken down prompting fears regarding a possible war. Dovish monetary policies, Global slowdown fears and ever spawning tensions between major economies (U.S taking the center stage in almost every chapter) will remain the driving factor for the gold on the upside.
On the chart –
Gold continued its enraged bull run breaking out of long consolidation as it mastered the $1400 mark after six good years. With almost all technical patterns broken on upside along with fundamental support gold has a fresh legs to scale highs of year 2013. We have 2 scenarios –
1. Gold had an enormous breakout, till its respected it can move to $1406. Once this is crossed it can rally to $1420. If this is taken out it can rise till $1434.
Bears had their share for last 6 years. Trend has changed comprehensively after last week’s breakout removing bearish bets and calls until a top is reached excepting scalping.
Bullish view – The screen was all green as bulls roared above $1400 for the first time after 6 years comprehensively breaking out of long consolidation and multiple technical patterns. Every angle sounds bullish as the quality of the move (breakout) signals immense follow through on the upside. Clock has turned back in favor of bulls big time with expected breakout of over 350 points once $1434 is conquered.
Trend change on a broad scale removes bearishness from the equation.
On larger terms, Gold has turned ultra bullish and prices are expected to head higher.
Possible trades are on both sides but mainly on upside, gold can be bought above $1406 for the targets of $1420 and $1434 with a stop loss placed below $1392.
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 continued its enraged bull run breaking out of long consolidation as it mastered the $1400 mark after six good years. With almost all technical patterns broken on upside along with fundamental support gold has a fresh legs to scale highs of year 2013. We have 2 scenarios –
1. Gold had an enormous breakout, till its respected it can move to $1406. Once this is crossed it can rally to $1420. If this is taken out it can rise till $1434.
Bears had their share for last 6 years. Trend has changed comprehensively after last week’s breakout removing bearish bets and calls until a top is reached excepting scalping.
Bullish view – The screen was all green as bulls roared above $1400 for the first time after 6 years comprehensively breaking out of long consolidation and multiple technical patterns. Every angle sounds bullish as the quality of the move (breakout) signals immense follow through on the upside. Clock has turned back in favor of bulls big time with expected breakout of over 350 points once $1434 is conquered.
Trend change on a broad scale removes bearishness from the equation.
On larger terms, Gold has turned ultra bullish and prices are expected to head higher.
Possible trades are on both sides but mainly on upside, gold can be bought above $1406 for the targets of $1420 and $1434 with a stop loss placed below $1392.
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.
Trade active:
Trade Active
Comment:
First long target met at $1420
Comment:
Second long target met at $1434
Comment:
Next long target $1448