Gold hatched above $1900 (weekly closing) on back of an unforgiving $100 rally from the lows as dollar continued to devalue. This parabolic move resembles a classic FOMO rally but it doesn’t seem to be exhausting anytime soon since there are still good amount of shorts in the system which if covered can keep the pace of increase intact. Geopolitical and economic situations remain as it is with pandemic continuing to haunt the revival. Week after week vaccine news keeps on getting intense but still its far from being a reality though many are in final testing phases. Economic data which was encouraging all the while post March did finally showcase a form of disappointment adding to the woes. Fundamentals remain ever so supportive with technicals pushing into a fresh level of bullishness post an all time high close. To watch next week – Federal reserve policy meeting, earnings and other important economic data.
On the chart –
Gold made a new all time high close (weekly) above $1900 fueled by a weakened dollar and a fresh bout of buying/short covering. This close certainly offers more room on the upside neglecting the overbought condition of the indicators as they can remain in that state for an extended time. But this optimism also has a shaded view which remains the dreaded double top but the weekly closing has likely ruled that out completely unless gap down brings it back in the picture. Above the all time high its uncharted waters with moves becoming slightly difficult to map but gold remains a strong buy as the trajectory of dollar and the yellow metal remains inverse of each other. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1921. If this is crossed it can move towards $1945. And if this is taken out it can rally to $1963.
2. Short bets remain at bay post such a close except scalp trades.
Bullish view – Bulls had a huge green week after a gap of 4 months conquering $1900 on back of a lower dollar. Bulls managed to close the week above $1900 for the first time which not only suggests a prolonged run but all together a shift in the range. The area of $1876-$1884 now becomes an important support zone. Multiple factors still side with the bulls even as indicators show overbought, the global turmoil remains at highs with economies still facing fresh shocks from the pandemic while geopolitical concerns continue to overpower any positivity from fundamental aspect. All in all, the demand for the yellow metal remains elevated even at such high price owing to the safe haven aspect and technical advancement.
Bears remain cornered post such a bullish close.
On larger terms, Gold remains bullish and prices are expected to head higher.
Possible trades are on both sides but mainly on upside, gold can be bought above $1907 for the targets of $1921 and $1945 with a stop loss placed below $1896. Longer term target $1963.
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.
On the chart –
Gold made a new all time high close (weekly) above $1900 fueled by a weakened dollar and a fresh bout of buying/short covering. This close certainly offers more room on the upside neglecting the overbought condition of the indicators as they can remain in that state for an extended time. But this optimism also has a shaded view which remains the dreaded double top but the weekly closing has likely ruled that out completely unless gap down brings it back in the picture. Above the all time high its uncharted waters with moves becoming slightly difficult to map but gold remains a strong buy as the trajectory of dollar and the yellow metal remains inverse of each other. We have 2 scenarios –
1. Gold closed above the support, till this is held it can go to $1921. If this is crossed it can move towards $1945. And if this is taken out it can rally to $1963.
2. Short bets remain at bay post such a close except scalp trades.
Bullish view – Bulls had a huge green week after a gap of 4 months conquering $1900 on back of a lower dollar. Bulls managed to close the week above $1900 for the first time which not only suggests a prolonged run but all together a shift in the range. The area of $1876-$1884 now becomes an important support zone. Multiple factors still side with the bulls even as indicators show overbought, the global turmoil remains at highs with economies still facing fresh shocks from the pandemic while geopolitical concerns continue to overpower any positivity from fundamental aspect. All in all, the demand for the yellow metal remains elevated even at such high price owing to the safe haven aspect and technical advancement.
Bears remain cornered post such a bullish close.
On larger terms, Gold remains bullish and prices are expected to head higher.
Possible trades are on both sides but mainly on upside, gold can be bought above $1907 for the targets of $1921 and $1945 with a stop loss placed below $1896. Longer term target $1963.
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.
Trade ist aktiv
Kommentar:
First long target met at $1921
Kommentar:
Second long target met at $1945
Kommentar:
Third long target met at $1963
Kommentar:
Further long targets $1989 and $2002