Good Morning Forex Friends
In our yesterday gold predictions we were expecting correction and then bounce towards 1277-81 that was daily resistance area.Price break the first resistance, give high at 1270 level and reverse back with closing below the daily resistance level.It gives us bearish thoughts.I am sharing 3 different time frame analysis to share my thoughts for gold possible next move.Please read the analysis written below.
Weekly Gold Overlook
In weekly analysis we are bullish in gold as long as price is above the support level 1191-93.Logical reason of our bullish thoughts is the break of descending channel that was forming since last few years.longer term target is 1370-90 and movement with closing above 1283-85 will give more confidence towards our bullish thoughts.If gold close below the support 1191-93 in weekly candle, it may change our thoughts from bullish to bearish.I am sharing weekly time frame chart below with target and invalidation point mention.Please have a look
Weekly Gold Chart
Daily Gold Overlook
Price move above the resistance level in daily time frame chart and break the symmetric resistance at 1255-56 but reverse back from 1270 with closing below the resistance level.Closing back in the symmetric triangle indicating bearish move for Friday. Gold symmetric support is become at 1233-35 level.This area will be the watching area in daily chart.If price bounce from support then it could touch again the declining resistance of symmetric at 1249-51.If gold break and close below the symmetric support in daily chart then we may see gold 1211-13 next week.Daily main support is at 1191-93.Break and closing below the daily main support will invalidate our over all bullish thoughts.Alternate if gold bounce back and close above the resistance level of symmetric triangle then gold next target will be 1277-81 area.But possibility is low , because we can see a clear shooting star and resistance rejection in daily candle.We will watch the support level for bounce or break to ride in the market.Please see the chart below i have mention support , resistance and alternate target levels.
Daily Gold Chart
4 Hour Gold Overlook
Today movement in 4 hour time frame chart forming a rising channel after the high of 1270 level.Support of this rising channel is at 1231-35 area.Gold may bounce from the support with minimum target 1249 and maximum at channel resistance 1273-77.If gold break the support then most probably we will see gold at 1211 and 1201 level in extension.My suggestion is to watch the support area for the bounce or break.Those who are planning to buy from support level should place stop loss below the support level ,i have mention in the chart ( Invalidation Zone ).If we get 4 hour closing below the support level we may jump in the market for bearish move with minimum target 1211-13.Please see the chart below, i mention support , target and alternate suggestion.
4 Hour Gold Chart
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Mati Ur Rehman
Gold Analyst @ dailygoldanalysis.com