Gold had a soft week with rangebound activity between support and resistance as expected. Being the last full week of 2019 but a truncated one with holiday/festivities mood at its best nothing much can be expected plus there remains no important news flow or major data points which could have a path breaking impact on the prices either. Gold stays in bullish grip as technicals continue to support. To watch this week – Important economic data.
On the chart –
Gold remained sideways with no directive moves as holiday mood kept the lid on volumes. The support of red diagonal trendline was respected which shows the current trend. Fundamentals still remain mixed but technicals remain in favor of bulls. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1480. If this is crossed it can move towards $1495. And if this is taken out it can rally to $1510.
2. Bearish bets remain neglected as the support holds except scalp trades, but if the support breaks it can move to $1448 and $1434.
Bullish view – Bulls remained the winners of the week as they added gains to the price in a low volume/volatility environment. Technicals continue to support the bulls while fundamentals stay mixed, but they need to defend the support for further gains.
Bearishness remains off the table as supports were held.
On larger terms, Gold has turned bullish and prices are expected to head higher.
Possible trades are on both sides but mainly on upside, gold can be bought above $1480 for the targets of $1495 and $1510 with a stop loss placed below $1468. Longer term target $1527.
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.
Reference: Trading View
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