Daily Gold Analysis 17th Oct 2016
Good Morning Forex Fantasies
We were expecting a correction in gold in previous analysis.Gold move sideways and close with a small spinning top weekly candle.We are still expecting a correction before a new low.But we spot confirmation points to catch the correction or new dip.I am sharing 2 different time frame chart analysis below.Please have a look.
Daily Gold Technical Analysis
After breaking the rising trend support.Gold made a new low and moving in a small range forming a symmetric triangle pattern in a daily chart.The beauty of symmetric triangle is , it can break anywhere either upside or downside. Resistance of symmetric triangle is forming around 1261-65 and support is around 1245-46.If gold break and close above the resistance in daily candle, it will be the confirmation of correct ion towards 1273 and 1281 minimum.Alternately if gold break the support and close below 1245-46, It will take gold towards new dip around 1221 minimum and 1201-05 in extension.Please have a look in a daily chart below, i have mention support and resistance areas with possible movement diagram.
Gold Daily Chart
4 Hour Gold Analysis
4 Hour gold chart help us to catch and confirm early movement.Gold is tranding in a range of small triangle pattern in hourly chart.Breaking the resistance in 4 hour chart will confirm the bullish move for correction towards 1271 and 1283 in extension , where as breaking the support will confirm the new dip towards 1217-21 and 1201-05 in extension.I suggest you to be patience and wait for the confirmation of break to jump in the rally.Please keep in mind , we consider the break confirmation after the closing of candle.Sowait for the closing of 4H candle to avoid false break.I am sharing 4 hour Gold chart below, Please have a look and trade after the confirmation of break.
Gold Support Resistance Levels
Hourly Support : 1245-47
Hourly Resistance : 1261-63
Note: Never risk more then 2% of your account capital in single trade.Always trade with proper risk management plan.
Feel free to comment below if you have any concern regarding charts and analysis.Your feedback is always welcome and help us to improve.
Wish you good luck and happy trading
Mati Ur Rehman
Gold Analyst @ Dailygoldanalysis.com