Good Afternoon Gold Lovers

Gold is trading in a range of 1227-1235 and forming a bearish flag pattern in 1 hour time frame chart.It gives more confidence to our bearish thoughts.I am sharing two different  time frame technical chart analysis to give a better logic why i am bearish in gold.Please have a look.

Daily Time Frame Chart Analysis

Gold gives reversal signals from its major resistance level and moving lower since 2 days.Minor support is at 1224-25.I am looking for a break of this minor support to  get the target 1211-15 level and 1191-93 in extension.Major resistance become 1245-51 area now and movement with closing in daily time frame chart above 1255-60 will invalidate my bearish thoughts.I mention resistance and the next support area in the chart below.

After break of rising support we can see clear bearish flag pattern in 1 hour time frame chart.Please keep in mind bearish flag indicating continios in a trend and we may see gold 1211-15 area very soon.Movement above the resistance that was previous rising support invalidate our bearish concept.Please adjust your stoploss above the resistance level.

Trade Recommendations :

We are in a trade from 1235 area. I Suggest you to close half position once gold reach the first target 1211-15 and move the stoploss to entry point.Gold next target may 1191-93.

Dont risk more then 1% of your account in single trade.adjust your stoploss and lot sizez according to money management rule.

We always welcome the feedback and comment regarding your concern on analysis.

Wish You Best Of Luck

Mati Ur Rehman

Gold Analyst @ dailygoldanalysis.com