Gold remained sideways trading in its set range with consolidation spilling into 5 straight weeks. The yellow metal had a weak start to the week but ended with gains of $7 without the support of lower dollar as global tensions weighed again. Point to note : Gold has been unsuccessful to give a weekly closing above $1286 after repeated tries over last few weeks which suggests the upside may still be capped and selling at highs remain the choice for the trade which continues to keep the bearish trend intact.
On the chart –
Gold made an attempt too break free of the range it had been trading in via a gap down but again was unsuccessful copying the last week’s swing. The closing continued to defy any breakout which continues to signal bearishness. We have 2 scenarios –
1. Bulls remain out of the scene as the bearish trend continues excepting scalp trade.
2. Gold closed below the support, till this is respected it can move towards $1273. If this is taken out it can fall to $1260. And if this is breached it can slide towards $1248.
Bullish view – Bullish bets still remain unattractive given the price movement which is encouraging bears. Only a breakout will catapult bulls back into the horizon.
Bearish view – Bears eroded the price below $1270 but failed to capitalize, still they can have a cheer as they didnt allow the price to breakout. For bears to remain as the front runners they need the defend the supports/levels and make sure that gold isn’t allowed to breakout. The flag/pattern continues with next key support area being $1236-$1240.
On larger terms, Gold continues to remain bearish and prices are expected to head lower.
Possible trades are on both sides, gold can be bought once it breaks out of the flag or at the bottom of the flag/channel.
Gold can be sold under $1284 for the targets of $1273 and $1260 with a stop loss placed above $1296. Longer term target $1248.
A sell-on-rallies can be useful under current scenario.
On the chart –
Gold made an attempt too break free of the range it had been trading in via a gap down but again was unsuccessful copying the last week’s swing. The closing continued to defy any breakout which continues to signal bearishness. We have 2 scenarios –
1. Bulls remain out of the scene as the bearish trend continues excepting scalp trade.
2. Gold closed below the support, till this is respected it can move towards $1273. If this is taken out it can fall to $1260. And if this is breached it can slide towards $1248.
Bullish view – Bullish bets still remain unattractive given the price movement which is encouraging bears. Only a breakout will catapult bulls back into the horizon.
Bearish view – Bears eroded the price below $1270 but failed to capitalize, still they can have a cheer as they didnt allow the price to breakout. For bears to remain as the front runners they need the defend the supports/levels and make sure that gold isn’t allowed to breakout. The flag/pattern continues with next key support area being $1236-$1240.
On larger terms, Gold continues to remain bearish and prices are expected to head lower.
Possible trades are on both sides, gold can be bought once it breaks out of the flag or at the bottom of the flag/channel.
Gold can be sold under $1284 for the targets of $1273 and $1260 with a stop loss placed above $1296. Longer term target $1248.
A sell-on-rallies can be useful under current scenario.
Trade active:
Trade Active
Trade closed manually