Gold Trading strategy for the week: Technicals explained in brief
CapitalVia Investment Advisor highlights that Gold briefly rallied throughout the week, but then gave back the gains, forming a shooting star pattern as we sit on top of what should be big support. If it breaks below the previous weekly candlesticks lows, then the gold market has a long way to fall, maybe to $1500 in the next leg. Gold prices rose 0.7% this week, but it remained in a narrow range.
CapitalVia Investment Advisor highlights that Gold briefly rallied throughout the week, but then gave back the gains, forming a shooting star pattern as we sit on top of what should be big support. If it breaks below the previous weekly candlestick's lows, then the gold market has a long way to fall, maybe to $1500 in the next leg. Gold prices rose 0.7% this week, but it remained in a narrow range. At $1725, prices tested support near the 10- day moving average. Near the 50-day moving average at $1794, target resistance is now visible. Near the June lows of $1670, there is more support.
Strategy for the upcoming week:
Traders should go with the Sell-on-rise strategy with Comex Gold future. Traders should sell Gold futures between the range of $1775 – $ 1780, keeping stop loss around the psychological level of $1800 and keep the target below $1699.
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Gold prices have been trading in a narrow range, retaining support but gaining little traction. Prices have struggled to gain traction as the dollar has strengthened and the yield on the 10-year Treasury note has risen. US 10-year bond yields jumped almost 9 basis points this week, while the dollar surged 0.3 percent. Because gold is quoted in US dollars, it has a tough time increasing when the dollar's value or treasury yields rise. MCX Gold futures traded in a narrow range of Rs 44750 – Rs 45120 throughout the week and closed on a positive note at Rs 45020 above the support of 15-days moving average.
Strategy for the upcoming week:
Traders should look forward to Sell-on-rise opportunity from Rs 45200, keeping stop loss of around previous resistance level of Rs 45650, for aiming target of Rs 44635.
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