Good Morning Gold Lovers
Gold is trading in a range between 1260-40 area.Current market price is 1249-50.I am expecting a big move once gold break its resistance above 1260-65 area.If price fail to break the resistance , we may get better price to buy gold from lows.I am sharing different time frame chart analysis to give my view.Please read the analysis and chart patterns below.
Weekly Chart Analysis
As i mention in my previous analysis, gold recently break its resistance of descending channel and give us bullish thoughts.Now that resistance become support, As long as gold is trading above the support level in weekly chart we will remain bullish and look for buy entry from the better prices.Weekly target for gold is at 1370-90.I have mention support and the target level in the chart below.
Daily Chart Analysis
Daily resistance is at 1260-65 area.Today closing of daily candle is below the resistance and forming a inverted hammer at the support level.I am expecting bullish move today from the support.If gold close and break above the resistance 1260-65 area, it will be indication and confirmation to buy gold from the resistance break.Gold next support is at 1224-25 level.If gold move lower and break the immediate support at 1233-37 level, we may see gold at 1224-25 and that will be best area to buy.I have mention support and resistance area in a chart below.
1 Hour Chart Analysis
We can predict and catch early move in 1 hour time frame chart.Price is making higher low and lower high in 1 hour chart and forming a symmetric triangle.The beauty of symmetric triangle is , it can break any side.If price break below the support , gold may move to the next support at 1224-25 area.If triangle break from upside , we will have opportunity to buy gold after breaking the resistance level.I suggest you to watch closely and enter the market after confirmation of break.I will update my analysis once i get clear break.I mention support and resistance area in a chart below.
1 Hour Chart
Note : Don’t risk more then 2% of your total account in single trade.Adjust your stop loss and lot size according to proper money management rule.
We always appreciate the comments and feedback regarding the analysis and chart patterns.
Best of luck for trading
Mati Ur Rehman
Gold Analyst @ dailygoldanalysis.com