Gold’s weekly outlook: June 17-21
Updated
Gold consolidated after huge gains in yet another another big week with range of over $38 with actual movement of less than a dollar. Such a move created an indecisive candlestick or a spinning top which is par on course as next week contains very important event of – “Fed’s interest rate decision” which will shape the future path of gold. The fundamentals remain in favor of the bulls and technically gold still remains in uptrend.
On the chart –
Gold created a new 52 week high as it rallied sharply once resistance of the gap was crossed which was created during opening on the first day of the week. Gold witnessed buying at the lows/supports and selling at the highs suggesting indecisiveness majorly due to the event. We have 2 scenarios –
1. Gold closed above the support, till this is held it can move to $1356. If this is taken out it can rally to $1365. If this is crossed it can move towards $1375.
2. Short trades remain out of action but can come into play only through scalping as the overall trend remains bullish.
Bullish view – Another new high was registered by the bulls making the metal rise nearly $90 from the low to the high in last 4 weeks. Bulls raged back after the disappointing opening but failed to keep the gains intact, still they managed a closing above previous week’s close which is considered bullish. For bulls to remain in the driving seat they need to break through the resistances and protect the supports as the frame looks quite set for a steady rise given the fundamentals around the globe.
Bears managed to leave a mark after getting cornered last week but still remains insufficient for the attention grabbing.
On larger terms, Gold remains bullish and prices are expected to head higher.
Possible trades are on both sides but mainly on upside, gold can be bought above $1341 for the targets of $1356 and $1365 with a stop loss placed below $1327. Longer term target $1375.
Dips towards support (and breakout region) can be used to create longs for the above mentioned targets.
Shorts can be useful for scalp trades only.
On the chart –
Gold created a new 52 week high as it rallied sharply once resistance of the gap was crossed which was created during opening on the first day of the week. Gold witnessed buying at the lows/supports and selling at the highs suggesting indecisiveness majorly due to the event. We have 2 scenarios –
1. Gold closed above the support, till this is held it can move to $1356. If this is taken out it can rally to $1365. If this is crossed it can move towards $1375.
2. Short trades remain out of action but can come into play only through scalping as the overall trend remains bullish.
Bullish view – Another new high was registered by the bulls making the metal rise nearly $90 from the low to the high in last 4 weeks. Bulls raged back after the disappointing opening but failed to keep the gains intact, still they managed a closing above previous week’s close which is considered bullish. For bulls to remain in the driving seat they need to break through the resistances and protect the supports as the frame looks quite set for a steady rise given the fundamentals around the globe.
Bears managed to leave a mark after getting cornered last week but still remains insufficient for the attention grabbing.
On larger terms, Gold remains bullish and prices are expected to head higher.
Possible trades are on both sides but mainly on upside, gold can be bought above $1341 for the targets of $1356 and $1365 with a stop loss placed below $1327. Longer term target $1375.
Dips towards support (and breakout region) can be used to create longs for the above mentioned targets.
Shorts can be useful for scalp trades only.
Trade active
Note
First long target met at $1356Note
Second long target met at $1365Note
Third long target met at $1375Note
Top of the channel target met at $1393
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