Gold’s weekly outlook: May 06-10
Gold continued to trade in the defined range similar to the previous week ending with cuts of more than $6. The week saw gold getting battered towards the low again as the Fed’s policy outcome was dovish for the dollar. The week again has important fundamental news majorly the U.S – China trade talks which is presumed to be at the last level of round of talks. Gold failed to create a new high even after having a positive opening rather it closed below the support again allowing the bearish trend to get stronger on every passing week.
On the chart –
Gold moved in a range showing indications of bear market consolidation as it was unable to breach highs or lows of previous week. The pattern breakdown was again retested and yet again confirmed solidifying the bearish trend. We have 2 scenarios –
1. Bulls continue to remain unwanted as the breakdown continues excepting scalp trading.
2. Gold closed below the support, till this is held it can move towards $1273. Once this is breached it can slide to $1260. If this fails to hold it can fall to $1248.
Bullish bets remain unattractive as breakdown continues, they only come in contention once a breakout on upside happens.
Bearish view – Bears resumed the attack after a week as they pushed the price back towards the low but failed to register a new one. The bearish bets saw a massive surge once the high of the previous week was respected and the price reversed. For bears, the technicals remain in their favor as the breakdown continues allowing room for further downside with the next crucial support area being $1236-$1240.
On larger terms, Gold remains 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 $1278 for the targets of $1273 and $1260 with a stop loss placed above $1289. Longer term target $1248.
A sell-on-rallies can be useful under current scenario.
On the chart –
Gold moved in a range showing indications of bear market consolidation as it was unable to breach highs or lows of previous week. The pattern breakdown was again retested and yet again confirmed solidifying the bearish trend. We have 2 scenarios –
1. Bulls continue to remain unwanted as the breakdown continues excepting scalp trading.
2. Gold closed below the support, till this is held it can move towards $1273. Once this is breached it can slide to $1260. If this fails to hold it can fall to $1248.
Bullish bets remain unattractive as breakdown continues, they only come in contention once a breakout on upside happens.
Bearish view – Bears resumed the attack after a week as they pushed the price back towards the low but failed to register a new one. The bearish bets saw a massive surge once the high of the previous week was respected and the price reversed. For bears, the technicals remain in their favor as the breakdown continues allowing room for further downside with the next crucial support area being $1236-$1240.
On larger terms, Gold remains 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 $1278 for the targets of $1273 and $1260 with a stop loss placed above $1289. Longer term target $1248.
A sell-on-rallies can be useful under current scenario.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.