Gold is hovering in a range with support and resistance getting tested every week. Yet again the prices moved in a very small band with gold suffering minor cuts of $6 for the week. $1300 got broken again but this is a new normal considering the price action that too within a strict range. The trend line was respected once again and the prices moved back from the lows suggesting the bullishness is yet not over even if $1300 mark is lost.
On the chart –
Gold’s closing below $1300 again doesn’t change the overall trend as support line was respected. Lot of fundamental news are expected which will move the prices in either direction but largely it shall remain rangebound given the current setup of gold. For any trend to set in a directive move is required. We have 2 scenarios –
1. Gold, for it to continue to mount gains $1295 is a must to be crossed. If this is crossed rally towards $1308 should materialize. And if this resistance zone is crossed it can move higher to $1317.
2. Gold is within its range, for short trades it must break the support/trend line. If $1281 is breached then it can fall towards $1265.
Bullish view – There is nothing much for either bulls or bears to take away but given the support being respected again bulls still have their fire burning and a rally higher cannot be ruled out if support holds.
There are no bearish views as the support was held.
On larger terms, gold continues to remains sideways as no direction was found yet. Gold has been locked in between the support and the resistance and a break of either will give the clue of the trend.
Possible trades are on both sides, gold can be bought above $1295 for the targets of $1308 and $1317 with a stop loss placed below $1285.
There are no short trades unless $1281 breaks, and if it does still its limited to $1265.