Gold saw a cut of only $6 in a volatile trade in the holiday thinned week. Prices yet again moved in a band of $20 continuing its old trend but closed fairly high from the lows indicating buying at lower levels supported by a weak dollar index. Prices took support at the median of bollinger band at the close suggesting its not ready to give up previous week’s gains. Such a closing still favors the bulls and the prices are expected to go higher.
On the chart –
Gold’s closing above $1284 again after falling to the lows of $1277 suggests it has become a strong support for the metal in the short term. The weekly bar created indicates continued bullishness even though it steered away from $1290s. Another thing to note is a possible bullish flag formation in 30mins timeframe which is a strong indicator for the upside. We have 2 scenarios –
1. Gold closed above the support of $1284-85 which suggests continued upward momentum. If this support is held it can go higher till $1297. If this crucial resistance area is taken out it can move above $1300 to $1308. And if this is crossed it can head towards $1317 which is the next resistance on the chart.
2. There are no short trades still as supports are held. And if the support at $1284 is broken still the downside is limited to $1270-$1271.
Bullish view – Bulls fought hard driving the prices back above the support of $1284 after seeing a massive intraday fall that too on the first day of the week. Such a move from lows indicates buying at lower levels and signaling the metal is not ready for a fall yet thus oozing bullishness. Bulls won this week again. If this trend is to continue and the support is held the prices are expected to go higher.
There is no bearish view until supports are broken.
On larger terms, Gold remains in the hands of the bulls and the prices are expected to head higher.
Possible trades are on both sides but largely on long side, Gold can be bought above $1297 for the targets of $1308 and $1317 with a stop loss placed below $1284. Longer term target $1334.
There is no positional short trade unless $1284 breaks, and if it does still its limited to $1270.
On the chart –
Gold’s closing above $1284 again after falling to the lows of $1277 suggests it has become a strong support for the metal in the short term. The weekly bar created indicates continued bullishness even though it steered away from $1290s. Another thing to note is a possible bullish flag formation in 30mins timeframe which is a strong indicator for the upside. We have 2 scenarios –
1. Gold closed above the support of $1284-85 which suggests continued upward momentum. If this support is held it can go higher till $1297. If this crucial resistance area is taken out it can move above $1300 to $1308. And if this is crossed it can head towards $1317 which is the next resistance on the chart.
2. There are no short trades still as supports are held. And if the support at $1284 is broken still the downside is limited to $1270-$1271.
Bullish view – Bulls fought hard driving the prices back above the support of $1284 after seeing a massive intraday fall that too on the first day of the week. Such a move from lows indicates buying at lower levels and signaling the metal is not ready for a fall yet thus oozing bullishness. Bulls won this week again. If this trend is to continue and the support is held the prices are expected to go higher.
There is no bearish view until supports are broken.
On larger terms, Gold remains in the hands of the bulls and the prices are expected to head higher.
Possible trades are on both sides but largely on long side, Gold can be bought above $1297 for the targets of $1308 and $1317 with a stop loss placed below $1284. Longer term target $1334.
There is no positional short trade unless $1284 breaks, and if it does still its limited to $1270.
評論:
Trade Active
評論:
First bullish target met at $1297
