Gold Weekly outlook – 12 March – 16 March
Early last week saw the metal falling back below the psychological and technical level of 1700.00; however, as the week came to a close, the bulls once again took control of the market pushing price back above $1700.
Last week’s fall and rise in price resulted in the weekly chart closing as a bullish pin suggesting a continuation of gold strength in the coming week.
The weekly pin bar found support and rejected a 50% retracement from the markets most recent upswing as seen in the chart below, strengthening a bullish outlook.
A look at the daily charts confirms a bullish outlook for spot gold with Fridays candle closing well above $1700 and as a bullish pin bar.
The chart below shows the relevance the 1700.00 level has had in this market with numerous tests’s and bounces of it.
With both daily and weekly charts suggesting a continuation from late last week, we’ll be looking to long the market in anticipation of further bullish momentum.
Initially we’ll be placing limit orders to buy at or around the 1700.00 level with our stop’s being placed just below last week’s lows. The next level of resistance comes in at 1763 which will be an obvious profit taking level giving an excellent R:R trade.
