Good Morning Gold Fantasies
In our yesterday analysis we were expecting bearish move towards 1241-43 and 1231-33 in extension.Gold move down according to expectations and give a low around 1239.I am still expecting little more down movement before bounce. I am sharing different time frame chart analysis to give my logical thoughts about gold.Please read the analysis below.
Weekly Chart Analysis
We are bullish in gold on basis of weekly technical chart.Gold was in a range of descending channel since few years.After the break of descending channel we set our thought to go bullish in gold with the target 1370-90.Descending channel resistance will act as a support and as long as gold is trading above the support level we will be bullish in gold.If gold break and close below the support 1191-93 in weekly time frame chart, we will change our thoughts accordingly.closing above 1283 in weekly chart will give us more confidence for our target.I have mention support , invalidation and target area in the weekly chart below.
Gold Weekly Chart
Daily Gold Chart Analysis
Previous candle closing in daily time frame chart indicating more bearish move today and possible immediate support is at 1231-33 area.Next support is at 1223-24 and 1191-93 that is also a main trend support.I am expecting a bounce from immediate support around 1231-33 with minimum target 1249-51.Gold is forming possible incomplete symmetric triangle pattern in a small range between 1223-24 to 1249-51.If gold test support and move high towards 1251 then we will consider it a complete symmetric.We may see gold in this range for couple of days and then it may break towards upside with minimum target 1269-71 and 1283-85 in extension.If gold move lower and break 1223-24 area , then this symmetric triangle will invalidate and we will look for buy entry from the third support level.I have mention support and resistance area of incomplete symmetric triangle in daily chart.please have a look below
Gold Daily Chart
4 Hour Gold Chart Analysis
I have set Fibonacci retracement level to get possible bounce area for gold today in 4 hour chart.Gold may bounce from 1233-35 towards 1249-51.Rising support of 4 hour chart is at 1227-28, If gold move and close below this level , it will invalidate our 4 hour bullish thoughts in short term .Break below this support will convert support into resistance and that will be the watching area to predict next move for gold.I suggest you to set your stop loss below the invalidation point i have mention in the chart below.
Gold 4 Hour Chart
Note : Never risk more then 2% of your account capital in single trade.Always trade with proper risk management plan.
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Mati Ur Rehman
Gold Analyst @ dailygoldanalysis.com