Good Morning Forex Fantasies
In our yesterday analysis we were looking for break or bounce from the support.gold bounce from 1231 level and made high at 1242.50.Price reverse back from minor resistance level and managing to touch support again.Today we have two different thoughts and confirmation points for possible gold next move.I am sharing different time frame chart analysis to give my view.Please read the analysis below.
Weekly Gold Analysis
As per our previous analysis , we are bullish in gold because of descending channel break in weekly chart.Gold long term target according to descending channel calculation is 1370-90.Couple of reversal candles in weekly chart indicating bearish move towards 1191-93 or 1201-03 level . We may get better price to buy gold from support levels.Movement and closing below 1191-93 will invalidate our bullish thoughts.break above 1283 will give more confidence towards our longer term target.Please see the weekly chart below, I have mention possible buy area, target and invalidation point in the chart.
Weekly Gold Chart
Daily Gold Analysis
Gold is trading in a range of symmetric triangle and making higher low and lower high pattern.The beauty of symmetric triangle is , it can break any side.Symmetric daily resistance is at 1243-47 and support is at 1230-31.If gold break and close below the support , then we will set our target at next major support level 1201-03 and 1191-93 in extension.If gold break the resistance of symmetric triangle then we may see gold at 1277-81 area.I suggest you to wait for the confirmation of break either upside or downside.Please keep in kind we consider break after the closing of candle stick.have a look at daily gold chart below , i have mention the support, resistance and the targets area for possible next move.
Daily Gold Chart
4 Hour Gold Analysis
Yesterday bounce from the support give bullish signal towards first resistance at 1243.gold move up and give high at 1242.50 and reverse back to test support again.Our thoughts are still same as per yesterday 4 hour analysis.We will look for the break of support around 1230-31 area or bounce from this level.I am expecting gold may break downside with couple of reasons.If gold break downside of rising channel then first target may 1201-03 and 1191-93 in extension.Movement below 1225 will give more confidence towards this target.Alternate if gold bounce from the support area, then gold my resist again at 1243-45 that will be the watching area for break or reversal.I suggest you to wait for the 4 hour candle closing for the confirmation of break or bounce.In case of support break,Support will become resistance, set your sell limit below 1226 with invalidation above resistance level.Please look the 4 hour gold chart below, i have mention break area with confirmation and alternate levels.
4 Hour Gold Chart
Note : Please dont enter in sell position unless price give clear break of support around 1230-33 area.We will consider break after the closing of 4 hour candle stick.Movement above 1243-45 will invalidate our 4 hour short term bearish thoughts.
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Mati Ur Rehman
Gold Analyst @ dailygoldanalysis.com