Good Morning Gold Fantasies.
Yesterday closing above the resistance invalidate our short term bearish thoughts and confirm the bulls may hold the market.We will have to look buy entry from lows.I am sharing different time frame chart analysis to give the logical view about gold.
Gold was in a downtrend and forming a descending channel that was broken few weeks before.That break gives us bullish thoughts with target 1370-90.Please keep in mind when ever the channel break we set our target by calculating the size of channel.So we will be bullish in gold until price break the support of descending channel.I mention support and the target area in a chart below.
Weekly Time Frame Analysis
Yesterday break and closing above the resistance confirms the bullish thoughts.According to technical concept when resistance break it may act as a support.So the resistance become support now at 1251-55 area.We may get some buy entry from the support area.If gold break the support in daily time frame then the next support is t 1233-37 area.We may get more good price to buy from the lows.Please look at daily chart below , I labeled support area in the chart image.
Daily Time Frame Analysis
Yesterday break and close above the resistance change our bearish concept to bullish.Current market price is at 1258 and the immediate support in 1 hour time frame is at 1251-55 area.We may see buying pressure from the support area.If gold break the support we will get better price to buy from the next support level around 1231-37 .I suggest you to remain bullish in gold and buy from the dips to get better price.I mention support and resistance in a chart below.
1 Hour Time Frame Chart Analysis
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Wish you best of luck for trading
Mati Ur Rehman
Gold Analyst @ Dailygoldanalysis.com