On the chart –
Gold remained sideways trading in a set band, this doesnt open up and directive moves yet making the past week’s trade more meaningless. Continued rejection of both the resistance and support makes the metal ready for move on either direction with a force in coming days/weeks. Gold is still split between the bulls and the bears, we have 2 scenarios –
1. Gold’s move from sub $1270s to test its resistance at $1284 signals there is still a pressure for the metal to head higher if the fundamentals support. If this is to continue gold can head higher to $1284. If this resistance is taken out gold can move to its crucial point in the $1200s to $1297.
2. Gold’s slid down from the opening up some activity for the bears. If this trend continues gold can further move lower to test the bottom at $1261. If this bottom is taken out it can slide lower to $1248.
view – Gold remained in the range but a point to notice was it shortened from the downside which is a good sign for the bulls. Higher lows always aid the prices moving ahead. Even if the $1270s gave way it is still not over for the bulls as they defended the support in $1260s once again. This trend should make the prices go higher.
view – Gold slid below the support which must give bears some ammunition to erode the prices to test the lows at $1261 again. The move towards the lows and then closing higher suggests a 3rd failed attempt to break the support at $1261. For bears to remain active gold must break the support at $1261.
On larger terms, Gold remains sideways. Prices are expected to be range bound unless a direction is decided.
Possible trades are on both sides, Gold can be bought above $1278 for the targets of $1284 and $1297 with a stop loss placed below $1268.
Gold can be sold below $1268 for the targets of $1261 and $1248 with a stop loss placed above $1278.