Gold remained in consolidation as it gained $13 on back of the lingering coronavirus issue. The price moved in tandem with the news flow regarding the state of the epidemic that is the deaths and new cases of coronavirus which is poising a threat to global growth. With China announcing that it has started to curb the virus which is visible through Sunday’s data, fundamental impact may lessen in coming days. Technicals continue to remain bullish with a likely breakout in daily charts. To watch this week – Fed meeting minutes and other important economic data.
On the chart –
Gold further consolidated as it posted gains which was majorly driven by the news of coronavirus and its economic impact. There is likely a positive breakout in daily charts from the triangle consolidation which should pave way for fresh highs. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1597. If this is crossed it can move towards $1616. And if this is taken out it can rally to $1630.
2. Short trades remain neglected as breath remains bullish except scalp trades.
Bullish view – Bulls made a comeback after a week’s pause as they steered the prices higher with a possible breakout in daily chart. The novel coronavirus helped in generating most of the gains as fears of global growth remained high due to the economic impact of the epidemic. Fundamentals look to provide lesser support going forward as China announced curbs on the virus which will limit the damage, but technicals remain supportive and it might have turned more bullish due to the likely triangle breakout covering the lost ground by fundamentals.
Bearishness continues to remain off the grid.
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 $1587 for the targets of $1597 and $1616 with a stop loss placed below $1576. Longer term target $1630.
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 further consolidated as it posted gains which was majorly driven by the news of coronavirus and its economic impact. There is likely a positive breakout in daily charts from the triangle consolidation which should pave way for fresh highs. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1597. If this is crossed it can move towards $1616. And if this is taken out it can rally to $1630.
2. Short trades remain neglected as breath remains bullish except scalp trades.
Bullish view – Bulls made a comeback after a week’s pause as they steered the prices higher with a possible breakout in daily chart. The novel coronavirus helped in generating most of the gains as fears of global growth remained high due to the economic impact of the epidemic. Fundamentals look to provide lesser support going forward as China announced curbs on the virus which will limit the damage, but technicals remain supportive and it might have turned more bullish due to the likely triangle breakout covering the lost ground by fundamentals.
Bearishness continues to remain off the grid.
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 $1587 for the targets of $1597 and $1616 with a stop loss placed below $1576. Longer term target $1630.
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 $1597Note
Second long target met at $1616Note
Third long target met at $1630
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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.