Gold 0.17% seems to continue its consolidation as it barely moved on weekly basis though it swung $25 in the week between the high and the low it created. It was volatile near the end of the week where it fell from the highs to the lows but managed to close up towards the support of $1194-$1198 levels and most importantly it did not break $1185 on the downside. Though this would mark as a 3rd straight week with negative returns but its strictly rangebound cushioned between $1185-$1217 which has acted as the boundaries and once either side is taken down it finds a legit direction. The bulls still have the case as $1185 is not broken.
Gold 0.17% has not yet found a clear direction as key levels on both upside and downside have been respected. Need to make a compulsive move which will ascertain a breakout from this range directing further course. We have 2 scenarios –
1. Gold 0.17% had another down week but support was respected. If this support is held it can go back towards $1208. If this is taken out it can rise to $1217. And if this is captured it can rally till $1228.
2. Bearish trades still doesnt have that glitter but it will shine once $1185 is taken out. If so, it can fall till $1162. If the 52 week low is taken out it can fall further towards $1123.
Bullish view – Bulls still not out of the game as the key support of $1185 is being respected. For them to keep up they need to hold the support, and if held moves on the upside cannot be ruled out.
Bearish view – Bears are active as they continue to pullback the prices from the highs and create lows but are unable to press hard as they fail to break the $1185 support. For strong bearish moves $1185 must be broken.
On larger terms, Gold 0.17% continues to remain sideways. Prices may remain rangebound to sideways until a direction is found.
Possible trades are on both sides, gold 0.17% can be bought above $1198 for the targets of $1208 and $1217 with a stop loss placed below $1185. Longer term target $1228.
Short trades go live 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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