Good Morning Forex Friends
In our yesterday analysis we were expecting more downward movement towards 1251-55 before a bounce.Price move lower at 1256-30 and give a bounce at 1269-70 area.We will have to look either the correction is over or it will make another dip before new high.I am sharing different time frame chart analysis with some confirmation points.please go through the analysis written below.
Weekly Gold Analysis
We are bullish in gold overall after the break of descending channel that was forming since few years.Our longer term target for gold is 1370-90.Gold is moving in a range of possible rising channel and this rising channel may complete its correction at 1251-55 level.We are expecting a bounce from the support with next target at 1317-20 and 1333 in extension which is the resistance of rising channel.Bounce from the support 1251-55 will confirm the rising channel formation.Weekly closing below 1251-49 will invalidate our bullish thoughts.I am sharing weekly chart below with diagram of possible next move.Please have a look.
Weekly Gold Chart
Daily Gold Analysis
Gold is in correction mode in daily time frame chart and we were expecting this correction may end around 1251-55 level.Price move lower with a new low at 1256.30 and bounce back and close with small spinning top candle in daily time frame chart.We will have to look either this correction is ended or it will touch the support again.If price move lower today then most likely it will bounce from 1251-52 level.If we get today closing above 1273-77 level then the next watching area will become 1283 to predict next movement.Movement and closing below 1249-51 in daily and weekly time frame will invalidate our overall bullish thoughts in gold.We will look shorter time frame chart to catch early confirmation to jump in the trade.Please see the daily chart below, i have mention support and resistance levels with invalidation points.
Daily Gold Chart
4 Hour Gold Analysis
We use 4 hour time frame chart to pick early signal and confirmation to ride next move.we were expecting a bounce from 1251-55 yesterday in 4 hour time frame chart.Gold move down and bounce from 1256 , We missed this buying opportunity with 1 point.1251-55 level is the support of rising channel that is forming in gold since few day.We are bullish mode in gold as long as price is taking care of its rising support.Buying from the support may give us big moves.We will have to look either price will reverse back from its first resistance 1271.If gold reverse from 1271 then we may have opportunity to buy from extreme support 1251-53.If gold fail to reverse from 1271 then we will look for 4 hour closing above 1273 to ride for next bullish move with target 1281-83.I have mention possible bounce areas with confirmation and invalidation points.please have a look in 4 hour chart below.
4 Hour Time Frame Chart
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( We Missed yesterday bounce with 1 point difference )
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Wish you good luck and happy trading
Mati Ur Rehman
Gold Analyst @ dailygoldanalysis.com