Gold’s weekly outlook: Sept 24-28

Gold posted a gain of over $5 in yet another week of consolidation. This week was an inside one where there was no higher highs or lower lows. Next week is eventful with Fed’s rate decision which can break this range the market is stuck into as lack of events in past month have failed to give any direction to the metal. With gold respecting the support it can be seen as the event might prove bullish for the prices. Volatility may be increased in the next week owing to the speculation due to the event.

On the chart –

Gold once again got resistance at $1210-$1212 and fell back below $1200. But the taking point is it achieved gains in the week compared to losses it was posting from last 3 weeks and a close above the resistance of $1198. Still its clueless about the direction and a big move is required to ascertain it. We have 2 scenarios –

1. Gold’s closing above the support of $1198 suggests it can go higher. If this is held it can go to $1208. If this is crossed it can rally till $1217. And if this is taken out it can move towards $1228.

2. Short trades doesnt entice much as the support is held. They come into action once the support of $1185 is taken out for targets of $1162 and $1123.

Bullish view – Bulls kept on the pressure as they managed to close above the resistance at $1198. For bulls to keep their momentum going they need to defend $1185 which they have done successfully for past 1 month and try to create a new high.

Bearish view – Bears are modestly into the game as they are not allowing the price to close above the psychological $1200. For bearishness to bloom $1185 needs to be taken out.

On larger terms, Gold still remains sideways. Prices may remain rangebound to sideways until a direction is found.

Possible trades are on both sides, gold can be bought above $1201 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.

gold weekly 75

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Gold’s weekly outlook: Sept 17-21

Gold 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.

On the chart –

Gold 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 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 continues to remain sideways. Prices may remain rangebound to sideways until a direction is found.

Possible trades are on both sides, gold 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.

gold weekly 74

Gold’s weekly outlook: Sept 10-14

Gold 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 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 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 doesnt 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 remains sideways as views split on either camp. Prices may remain sideways until a direction is found.

Possible trades are on both sides, gold 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.

gold weekly 73

Gold’s weekly outlook: Sept 03-07

Gold was rangebound and consolidating after a large weekly green bar. It moved between the support and the resistance before finally settling above the crucial $1200 mark for the week. Metal seems to have found some footing at $1198 which is a very important level for the price to take a direction. There was rejection at the highs but it also got support at the lows indicating that fresh bout of buying is happening at lower levels now indicating $1194-$1198 as a demand zone. Another bullish takeaway is it has formed a higher-high and a higher-low after many weeks.

On the chart –

Gold held on to the $1200 level after giving back a very modest $4 in the rangebound week. With supports acting as a strong base, Gold can restart afresh on the upside again. We have 2 scenarios –

1. Gold’s holding of $1200 is a strong call for further upmove. Till this is held it can rise towards $1208. If this is crossed it can rally till $1217. If this is taken out it can go till $1228.

2. Shorting is still not viable enough as $1200 was held upon again. They become active once $1185 is taken out.

Bullish view – Bulls had another week in their favor irrespective of the loss which the metal posted. New highs were achieved and the next resistance level tested. The pattern of higher-highs and higher-lows is another factor aiding the bulls. As $1200 was held, chances remain high that the metal will move higher.

Bearishness still doesn’t entice as the supports are being held.

On larger terms, Gold still remains cautiously bullish and prices are expected to head higher.

Possible trades are on both sides, gold can be bought above $1204 for the targets of $1208 and $1217 with a stop loss placed below $1198. Longer term target $1228.
Short trades are against the trend and not a good choice, they only open up as a scalping trade till $1185 is held.

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