Good Morning Gold Lovers
We were in bullish mode yesterday with target 1317 after the break of 1301.Gold move high according to expectations and give high 2$ less then our target and reverse back from 1315.It was the resistance area and price clearly rejects the resistance and reverse very fast with daily closing around 1277-78 which was our expecting target for correction.We believe correction is not over, price can move more down before a bounce for next high.I am sharing three different time frame chart analysis to give my logical technical view about gold next move.Please go though the analysis written below.
Daily Gold Analysis
Clear shooting star candle stick from the resistance indicating more bearish move today.Gold immidiate support is forming at 1265-66 level and the next support for daily time frame is around 1251-55.We will look for the bounce from 1251-55 area which suitable buying zone for bulls and it is also rising support of daily main bullish trend.Please keep in mind if gold close below the rising support , it may invalidate our bullish thoughts.Please see the daily chart below, i have mention possible next buying zone with invalidation area.Alternately if gold fail to complete the correction and reverse back, then next target for gold may 1327-31, but chances are low.We are expecting 1251-55 area for bounce with target 1327-31.
Daily Gold Technical Chart
4 Hour & Hourly Gold Chart
We pick 4 hour and hourly charts to see the closest picture of trend , it may help us to catch the early moves and targets level.Gold was moving in a rising channel in hourly charts.We can see a clear break of rising channel support in 4 hour and 1 hour chart.It is early signal for bearish move with minimum target 1266 and maximum 1251-55 which is also the support area of daily and weekly time frame chart.We will look for buy entry from the dip 1251-55 area.Please see the 4 hour and 1 hour chart below, i have mention possible buying area with target levels.Alternately if gold fail to fall more and rise again, then we will look for the buy entry after the break of 1290-93 in hourly charts for target 1327 , but chances are very low for this move.
4 Hour Gold Chart
1 Hour Gold Chart
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Mati Ur Rehman
Gold Analyst @ Dailygoldanalysis.com
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