Gold finally broke its trading range as it rose over $14 for the week closing above $1215. The week was a big one where it moved nearly $45 from the lows to the highs where the gains were attributed to a sharp decline in the dollar index in the later half of the week. Gold made a 10-week high on account of risk-off trade being stepped up due to rising bond yields. This breakout is extremely bullish and the high of the range now becomes the support as gold will get costlier.
On the chart -
Gold made a move on the upside after being trapped in the range for nearly 2 months. The breakout seals the direction towards bullishness and fresh highs are on the cards. We have 2 scenarios -
1. Gold had a bullish breakout and if $1215 holds it can rise till $1228. Once this is crossed it can rally till $1243. And if this is taken out it can test the highs at $1260.
2. Short trades definitely are not the flavor as gold had bullish breakout.
Bullish view - Bulls finally won the battle as they were able to cross $1215 on closing basis. This sets the tone for coming weeks as it aint a minor breakout. Bulls now have the liberty and the required firepower to make the price go higher. Till $1215 holds gold can keep on creating fresh highs and should atleast test $1243 which was its breakdown point.
There is no bearish view as range was broken on the upside.
On larger terms, Gold has turned bullish and prices are expected to head higher.
Possible trades are on both sides, gold can be bought above $1217 for the targets of $1228 and $1243 with a stop loss placed below $1208. Longer term target $1260.
Short trades dont have much value, they can only be worthy if $1215 breaks or can be used to scalp.
On the chart -
Gold made a move on the upside after being trapped in the range for nearly 2 months. The breakout seals the direction towards bullishness and fresh highs are on the cards. We have 2 scenarios -
1. Gold had a bullish breakout and if $1215 holds it can rise till $1228. Once this is crossed it can rally till $1243. And if this is taken out it can test the highs at $1260.
2. Short trades definitely are not the flavor as gold had bullish breakout.
Bullish view - Bulls finally won the battle as they were able to cross $1215 on closing basis. This sets the tone for coming weeks as it aint a minor breakout. Bulls now have the liberty and the required firepower to make the price go higher. Till $1215 holds gold can keep on creating fresh highs and should atleast test $1243 which was its breakdown point.
There is no bearish view as range was broken on the upside.
On larger terms, Gold has turned bullish and prices are expected to head higher.
Possible trades are on both sides, gold can be bought above $1217 for the targets of $1228 and $1243 with a stop loss placed below $1208. Longer term target $1260.
Short trades dont have much value, they can only be worthy if $1215 breaks or can be used to scalp.
Comment:
Trade Active
Comment:
First long target met at $1228