On the chart –
Gold saw a rise of over $30 which successfully closed above two crucial resistances one at $1300 and other $1317. The clear breakout over the $1317 suggests there is more upside to this metal. Technically now it seems the cup formation is in full & fast progress and the prices are expected to achieve new highs. We have 2 scenarios –
1. Gold’s closing above $1317 speaks plenty itself, with this kind of momentum prices can rise to $1342 where the metal might find resistance as it completes a pattern there. If this resistance is crossed prices can head higher to $1356. If this area is taken out gold can surge to the highs of $1375 where it finally completes the cup formation and may find severe resistance.
2. There are no short trades available at all unless $1317 is taken out but still its limited to $1301 to the max, major trades on the short side start only once the prices dips below $1301
view – Bulls were on a tear as they conquered the crucial $1300 mark with large gains which also aided the price to close above next major resistance at $1317. Its a party unless $1301 is broken, till then the price remains in the grip of bulls which is expected to create fresh highs in coming days/weeks. With $1300 successfully scaled its very difficult for the prices to fall below it now which suggests metal may finally be out of the multi-month cycle. Trend and fundamentals remain with the bulls and the prices are expected to rise further.
There is no perspective to the metal unless key supports are broken.
On larger terms, Gold continues to remain in firm grip with the prices expected to create fresh highs.
Possible trades are on both sides but largely on the long side, Gold can be bought above $1328 for the targets of $1342 and $1356 with a stop loss placed below $1317. Longer term target $1375.
There are no short trades available nor advised but still gold can be sold below $1317 for the targets of $1307 and $1301 with a stop loss placed above $1328.