Gold prices almost mirrored the previous week’s move. It remained in the clutches of a defined range but broke the $1200 mark which may cause some panic again in the bullish camp. The region from where the buying was visible is not yet breached even though $1198 has been broken on the chart. The discomforting factor apart from the break of $1200 is the formation of Lower highs and Lower lows which does not emit good vibes for the prices going ahead. The saving grace for the metal maybe the monthly chart which doesnt has room for a big downside given the bolinger bands but that implies to the whole month which is left.
On the chart –
Gold -0.17% broke the $1200 again in yet another rangebound week. Factors are split for the bullish and bearish cases as data points indicate confusion though a downmove cannot be ruled out once $1185 breaks, till then it may remain bullish . We have 2 scenarios –
1. Gold -0.17% latched on to the support of the buying region. If this is held it can head back up to $1198. If this is crossed it can move towards $1208. If this is taken out it can rally till $1217.
2. Again bearish trades doesn’t feature much but will open up once $1185 is taken out for the target of $1162 and $1123.
Bullish view – Bulls were pushed back under $1200, though all is not over as the main support of $1185 is still intact. Bulls need to defend that to keep themselves in the game. If the support holds then a move back towards the recent highs and even higher cannot be ruled out.
Bearish view – Bears found some ammo as they pushed the price back below $1200 but its not done for the trend to go back in their favor. They need to take out $1185 for further downside and if the low of $1160 breaks then $1120s is on the cards.
On larger terms, Gold -0.17% remains sideways as views split on either camp. Prices may remain sideways until a direction is found.
Possible trades are on both sides, gold -0.17% can be bought above $1201 for the targets of $1208 and $1217 with a stop loss placed below $1194. Longer term target $1228.
Short trades open up once $1185 breaches, if it does then it can be sold for the targets of $1162 and $1123.
Reference: Trading View
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