Gold faced another sideways week which was encapsulated between the support and the resistance. The range was bigger than the earlier week with price swinging $18 inbetween highs and lows accredited to the nature of the week which was full of important fundamental activities from which gold is to take cues in short/mid term. Important takeaway remains much similar, it closed above the support conclusively while the demand was visible at the lower level and supply at higher. Such kind of movement can be widely anticipated as overall the metal is pinned to a channel/flag.
On the chart –
Gold had a no show kind of week where the range of the swings was deeper but the actual outcome was negligible. Still it sports a trend as the ongoing bullishness is preserved as the support was held. We have 2 scenarios –
1. Gold held on to $1217 yet again, till its respected it can move higher to $1228. If this is crossed it can go till $1236. And if this is taken out it can rally till $1243 with $1251 being the next target.
2. Short trades does favor the current setup in which the prices are moving but mainly through scalping as positional ones come live once the flag is broken on the downside for targets of $1185 and $1162.
On larger terms, Gold remains inside the flag/channel and prices are expected to be rangebound.
Possible trades are on both sides, gold can be bought above $1228 for the targets of $1236 and $1243 with a stop loss placed below $1217. Longer term target $1251.
Short trades come to play once the flag support is broken which can lead to $1185 and $1162 till then its a perfect scalping tool.
Reference: Trading View
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