Good Morning Gold Riders
In our previous analysis we were expecting a correction before a new high.Gold fail to give correction and break the bearish invalidation point and hit our first and second target at 1373-77 area.We are still expecting more bullish movement.I am sharing 3 different time frame chart analysis to give my logical view about gold.Please go through the analysis written below.
Weekly Gold Analysis
We were bullish in gold after the break of descending channel which was forming since few years and our longer term target was 1370-90 which was hit in previous week session.This is what we were expecting since few weeks.We believe gold still have enough momentum to remain bullish.As long as gold is taking care of its support level, we will remain bullish and will look to pick the best prices.Gold current market price is 1366-67.Immidiate support is forming at 1350-51 area.Gold next target may at 1413-17.Movement above 1377 will give confirmation to this target.Movement and closing below 1340-33 will invalidate bullish move for short term bas have mention buy area with targets and invalidation zone for better understanding.
Weekly Gold Chart
Daily Gold Analysis
Gold break its higher high resistance in daily time frame chart and close exact above the resistance with hammer candle stick is in favor of more bullish moves.It is also expecting gold can touch its support level again around 1349-51 area.Gold next target is at 1413-17 , movement above 1377 will give more confidence towards the target.Alternately if gold move and close below the support , it will invalidate bullish thoughts for short term basis.Support line is mention in the chart below.My suggestion is to stay neutral in the market and wait for the break of 1377 for buying confirmation.If gold fail to break 1377 then look for the buy entry from the support 1249-51 with invalidation below 1340.I have mention possible next movement diagram with alternate scenerio in the chart below.Please have a look.
4 Hour Gold Chart
4 Hour Gold Analysis
We pick 4 hour chart to get early signal and confirmation points.Gold is trading in possible rising channel in 4 hour time frame chart.Support is around 1249-51 and resistance is formin g at 1275-77.If gold touch the support first we will look for buy entry from the support.If gold break the resistance at 1277 level, we will look for the but entry after the break of 1277 in 4 hour time frame chart.Please keep in mind we consider break after the closing of candle stick.Please see the 4 hour time frame chart below, i have made a diagram of possible next move of rising channel.
4 Hour Gold Chart
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Mati Ur Rehman
Gold Analyst @ Dailygoldanalysis.com
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