Gold continued to consolidate in a $20-$22 band with actual movement being less than a dollar maintaining the bearish momentum. The highs were sold into as risk-on re-emerged strongly owing to fundamental developments and better than expected data from America. The bar created looks very bearish and fresh lows are expected as tensions around the globe seem to take a breather.
On the chart –
Gold respected the breakdown by having a closing under the red trendline after it broke through it in the early part of the week. The move tries to confirm the shift in the trend to bearish. On the chart –
1. Bulls continue to remain out of action as they failed to prop-up the prices excepting scalp trading.
2. Gold closed below the support, till this is respected it can move towards $1284. If this is taken out it can fall to $1273. And if this gives way it can slide to $1260.
Bullish view – Bulls tried their best to turn the trend back in their favor but failed badly giving a red flag to bullish bets yet again.
Bearish view – Bears came out as the winners at the end of the week as they pushed the price back by $20 from the highs making it close below the red trendline again suggesting the breakdown continues. For bears to continue their assault they need to keep the price below the supports and new lows can be expected with next major 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 $1289 for the targets of $1284 and $1273 with a stop loss placed above $1298. Longer term target $1260.
A sell-on-rallies can be useful under current scenario.
On the chart –
Gold respected the breakdown by having a closing under the red trendline after it broke through it in the early part of the week. The move tries to confirm the shift in the trend to bearish. On the chart –
1. Bulls continue to remain out of action as they failed to prop-up the prices excepting scalp trading.
2. Gold closed below the support, till this is respected it can move towards $1284. If this is taken out it can fall to $1273. And if this gives way it can slide to $1260.
Bullish view – Bulls tried their best to turn the trend back in their favor but failed badly giving a red flag to bullish bets yet again.
Bearish view – Bears came out as the winners at the end of the week as they pushed the price back by $20 from the highs making it close below the red trendline again suggesting the breakdown continues. For bears to continue their assault they need to keep the price below the supports and new lows can be expected with next major 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 $1289 for the targets of $1284 and $1273 with a stop loss placed above $1298. Longer term target $1260.
A sell-on-rallies can be useful under current scenario.
Trade active
Comment:
First short target met at $1284
Comment:
Second short target met at $1273