Gold took a u-turn after hitting the resistance area and dropped over $35 from the highs before settling for cuts of over $20 for the week. Gold has been making lower highs and lower lows whenever it breaks out which is not a good sign for the bullish trend, but given the fact moreover every time the $1300 mark has been held gives impetus to the overall trend to remain bullish. Such a down move can be exclaimed as a retracement of the move from the lows of $1301-02 to the highs of $1356-57, and this may yet again act as a support zone for the coming week.
On the chart –
Gold had a pullback from the highs in a truncated week of trading and seems to have found support at the 38.2% mark of Fib retacement on closing basis. Still gold remains trapped in the range and was not able to carry the momentum it gained last week to break free. Thus the scene becomes same again –
1. Gold’s closing above the support indicates there might still be room for the upside but that can only happen if it takes out $1331. If this is taken out it can move towards $1345. If this area is held then it can move back higher to $1358. And if this big resistance zone is crossed it can head to fresh 52 week highs at $1374.
2. With gold becoming choppy and getting plowed back into the range again short trades can come effective if $1331 is defended. It can fall to the support at $1317. If this fails to hold it can further slide towards $1308.
Bullish view – Bulls were having the momentum on their side for the first half of the week but ultimately conceded the gains but managed to hang on to supports of Fib retracement as the key $1331 was broken. If they manage to hold on to supports then a rally back towards the highs cannot be ruled out though since it being in a range not much gains can be expected till its broken. Price action is choppy and confusing but supports need to hold for any upmove to continue though the overall trend remains bullish till $1300 is held.
Bearish view – Bears ousted the bulls yet again by not allowing them to continue the momentum from last week. The highs were taken as a good shorting opportunity and the price got eroded below the key level of $1331. Same goes for bears what went for bulls, in a choppy scenario much gains on the downside is also not expected unless $1300 breaks down.
On larger terms, Gold turned sideways again with a bearish bias as the closing was not upto the mark plus the pattern created has scope for both upside and downside. On a broader picture gold is still confined in a range and it must break on either side for a decisive trend.
Possible trades are on both sides, gold can be bought above $1337 for the targets of $1345 and $1358 with a stop loss placed below $1331. Longer term target $1374.
There are no short trades unless $1317 breaks, and if it does still its limited to $1308.
On the chart –
Gold had a pullback from the highs in a truncated week of trading and seems to have found support at the 38.2% mark of Fib retacement on closing basis. Still gold remains trapped in the range and was not able to carry the momentum it gained last week to break free. Thus the scene becomes same again –
1. Gold’s closing above the support indicates there might still be room for the upside but that can only happen if it takes out $1331. If this is taken out it can move towards $1345. If this area is held then it can move back higher to $1358. And if this big resistance zone is crossed it can head to fresh 52 week highs at $1374.
2. With gold becoming choppy and getting plowed back into the range again short trades can come effective if $1331 is defended. It can fall to the support at $1317. If this fails to hold it can further slide towards $1308.
Bullish view – Bulls were having the momentum on their side for the first half of the week but ultimately conceded the gains but managed to hang on to supports of Fib retracement as the key $1331 was broken. If they manage to hold on to supports then a rally back towards the highs cannot be ruled out though since it being in a range not much gains can be expected till its broken. Price action is choppy and confusing but supports need to hold for any upmove to continue though the overall trend remains bullish till $1300 is held.
Bearish view – Bears ousted the bulls yet again by not allowing them to continue the momentum from last week. The highs were taken as a good shorting opportunity and the price got eroded below the key level of $1331. Same goes for bears what went for bulls, in a choppy scenario much gains on the downside is also not expected unless $1300 breaks down.
On larger terms, Gold turned sideways again with a bearish bias as the closing was not upto the mark plus the pattern created has scope for both upside and downside. On a broader picture gold is still confined in a range and it must break on either side for a decisive trend.
Possible trades are on both sides, gold can be bought above $1337 for the targets of $1345 and $1358 with a stop loss placed below $1331. Longer term target $1374.
There are no short trades unless $1317 breaks, and if it does still its limited to $1308.
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Trade Active
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First bullish target met at $1345
