Gold had a flat week with very little actual gains as it still remained in consolidation after a mammoth rally. With countries under immense pressure to re-open economic activities along with linear growing infections globally, it certainly invites a cloud of uncertainty about the future as in weekend South Korea and China reported fresh cases, second wave of infections after having re-opened most of the activities forcing them to undertake preventive measures again. Coming to the big news regarding a possible restart of the trade war between U.S and China could again derail both the economies which caused a rally in the yellow metal though it failed to sustain the gains but helped enough to have a closing above $1700 again. It looks like the situations are not wanting to improve with new tensions flaring up as the world continues to reel under the pressure of the pandemic. All the above points direct towards a sustained bull run which may not have a weak point anytime soon. To watch this week – Inflation and other important economic data.
On the chart –
Gold had a green week though a very small one but noticeably important as it reclaimed $1700 after taking support at lower levels indicating another near term base formation. Fundamentals remain the stronger point with key issues resurfacing which is adding to the uncertainty while technically gold remains in a triangle consolidation which should likely break on the upside if not already. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1716. If this is crossed it can move towards $1727. And if this is taken out it can rally to $1740.
2. Short trades remain uninteresting as the bullish trend remains intact except scalp trades.
Bullish view – Bulls had a nice outing but ended up with very little actual gains, still they added to the accomplishments by reconquering the $1700. The move was majorly due to the increased geopolitical tensions amidst the virus chaos caused by possible re-ignition of the trade war between U.S and China. The only factor which may hurt the bulls is the re-opening of the economies globally but again with fresh virus infections not showing declining signs it will moreover add to the uncertainty rather then cooling off. The fundamentals are only getting stronger by week on week basis while the technicals still bullish have entered into a time consolidation. For bulls to keep moving higher smoothly, they need to break the consolidation on the upside and aim for new highs.
Bearishness remains off the table unless the pattern/trend changes otherwise.
On larger terms, Gold continues to remain bullish and prices are expected to head higher.
Possible trades are on both sides but mainly on upside, gold can be bought above $1705 for the targets of $1716 and $1727 with a stop loss placed below $1685. Longer term target $1740.
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 had a green week though a very small one but noticeably important as it reclaimed $1700 after taking support at lower levels indicating another near term base formation. Fundamentals remain the stronger point with key issues resurfacing which is adding to the uncertainty while technically gold remains in a triangle consolidation which should likely break on the upside if not already. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1716. If this is crossed it can move towards $1727. And if this is taken out it can rally to $1740.
2. Short trades remain uninteresting as the bullish trend remains intact except scalp trades.
Bullish view – Bulls had a nice outing but ended up with very little actual gains, still they added to the accomplishments by reconquering the $1700. The move was majorly due to the increased geopolitical tensions amidst the virus chaos caused by possible re-ignition of the trade war between U.S and China. The only factor which may hurt the bulls is the re-opening of the economies globally but again with fresh virus infections not showing declining signs it will moreover add to the uncertainty rather then cooling off. The fundamentals are only getting stronger by week on week basis while the technicals still bullish have entered into a time consolidation. For bulls to keep moving higher smoothly, they need to break the consolidation on the upside and aim for new highs.
Bearishness remains off the table unless the pattern/trend changes otherwise.
On larger terms, Gold continues to remain bullish and prices are expected to head higher.
Possible trades are on both sides but mainly on upside, gold can be bought above $1705 for the targets of $1716 and $1727 with a stop loss placed below $1685. Longer term target $1740.
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 $1716Note
Second long target met at $1727Note
Triangle broken which suggest a fresh leg on the upside as mentioned aboveNote
Third long target met at $1740
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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.
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.