Gold consolidated with minor cuts of $4 after making 3 large candles closing above its previous 52 week high again keeping the overall trend intact. Price saw a u-turn from sub $1540s level again signalling a possible near term bottom/key demand zone as dollar remained weak. With next big fundamental event being on the radar – Impeachment of the U.S President, its highly unlikely the metal will negate the uptrend while fresh highs should definitely loom large keeping the bears in a limbo. Fundamentals look really strong for an upside in metal now whilst technicals still drag along which may lead to more consolidation before a fresh burst on the upside. To watch this week – World Economic Forum in Davos and other important economic data.
On the chart –
Gold had a subdued week after a mega 100 point rally owing to lowered geopolitical tensions/risks and a possible time correction. But the story remains intact with uptrend continuing as the metal had a positive closing again above its previous 52 week high along with fundamentals showing strong support for bulls and technicals pointing in any other direction except south. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1571. If this is crossed it can move towards $1581. And if this is taken out it can rally to $1597.
2. Short trades still doesn’t entice as trend remains bullish except scalp trades.
Bullish view – Bulls took a breather after a 100 point sprint but remained in action as they pulled back the price from the lows again providing a positive close for themselves. Fundamentals stay in favor of bulls while technicals may not be that bullish but it isn’t bearish either so overall the trend remains intact for the uptrend to continue. For bulls to remain in the driving seat they need to protect the lows while aiming for fresh highs.
Bearishness remains negligible as the bullishness prevails.
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 $1564 for the targets of $1571 and $1581 with a stop loss placed below $1554. Longer term target $1597.
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 subdued week after a mega 100 point rally owing to lowered geopolitical tensions/risks and a possible time correction. But the story remains intact with uptrend continuing as the metal had a positive closing again above its previous 52 week high along with fundamentals showing strong support for bulls and technicals pointing in any other direction except south. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1571. If this is crossed it can move towards $1581. And if this is taken out it can rally to $1597.
2. Short trades still doesn’t entice as trend remains bullish except scalp trades.
Bullish view – Bulls took a breather after a 100 point sprint but remained in action as they pulled back the price from the lows again providing a positive close for themselves. Fundamentals stay in favor of bulls while technicals may not be that bullish but it isn’t bearish either so overall the trend remains intact for the uptrend to continue. For bulls to remain in the driving seat they need to protect the lows while aiming for fresh highs.
Bearishness remains negligible as the bullishness prevails.
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 $1564 for the targets of $1571 and $1581 with a stop loss placed below $1554. Longer term target $1597.
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.