Daily Gold Analysis 23rd May 2016
Good Morning Forex Friends
In our Friday analysis we were expecting consolidation phase for couple of days from 1250 to 1259 area.Price move in a sideways in Friday session.It is possible gold may give little bit more downward movement before a bounce.I am sharing different time frame chart analysis below to give my logical thoughts about gold next move.Please read the analysis written below.
Weekly Gold Analysis
Weekly overlook for gold is bullish, and we believe previous couple of week candles were correction candle.We are bullish in gold after the break of descending channel that was forming since years.Gold is moving in a possible rising channel after the break of descending channel.The next resistance or higher high of rising channel is at 1331-37 area and the immediate support is at 1247-51.We are expecting a bounce from this area and it is also possible gold move more lower towards 1241-40 but it will close in weekly candle above 1251 to give bulls an early signal to jump in.Please keep in mind rising support or resistance keep changes with the price.So always look for the support and resistance area to get the exact price.Please have a look in chart below i have mention rising channel support and resistance area.Movement and closing below the support line will invalidate our rising thoughts in gold.
Weekly Gold Analysis
Daily Gold Analysis
Gold move in a small range between 8 to 9 points in Friday session.It is most likely gold may move sideways again in today session and then give a possible bounce.Alternately gold could move lower towards 1240-41 and bounce with closing above 1251 to give thoughts to remain in bullish.Movement above 1260-61 will give confidence to buyer. I Suggest you to remain neutral in gold if price is below 1250 , and wait for the confirmation to jump in the market.Buying from the better price is a good idea if we get low price 1240-41 to buy from.Please have a look in daily chart below to get idea for bouncing area.
Daily Gold Chart
4 Hour Gold Analysis
After break the rising channel , gold is forming possible declining or descending channel in 4 hour time frame chart.If price move more down , test 1241 area and bounce , it will confirm the descending channel formation.In that case gold next target after hitting 1240 level will be 1260-61 and 1270-73 in extension.Movement and closing below 1240 in 4 hour time frame chart will invalidate the declining channel and may take gold directly towards 1225 and 1213 level in extension.Alternately if gold bounce without testing 1240-41, then we will look for the break of 1260-61 to jump in bullish move again with target 1275-77.Please see the 4 hour chart below, i have mention key areas and invalidation points.
4 Hour Gold Chart
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Mati Ur Rehman
Gold Analyst @ dailygoldanalysis.com