Good Afternoon Forex Fantasies
In our yesterday analysis we were expecting gold may touch 1301-05 level before a new bounce.Gold move lower and bounce from 1311-12 area and close in daily session around 1316-17.Technically short term down trend is not over and we are still expecting 1301-05 level to touch.We have also alternate confirmation point , if gold cross above and break hourly resistance, it will be early indication of trend change.I am 4 hour time frame chart analysis .Please go through the analysis written below.
4 Hour Gold Technical Analysis
Price is moving in a descending channel in 4 hour time frame chart.Resistance of this channel is forming around 1337-41 area and support is at 1301-03. There is also rising support in 4 hour time frame chart which is forming around 1312-13 area.We will look for the confirmation of resistance break or reversal from resistance.We are still expecting gold may touch its final hourly support at 1301-05 area ( Buying Zone ) , then bounce for the new high above 1373 and 1417 in longer term extension.If gold fail to touch its support level and break above 1337-41 area in 4 hour time frame chart, we will look for the buy entry after the break of 4 hour resistance which is showing as a black line in the chart below.
Please keep in mind, movement and closing below 1301 daily and weekly time frame char will invalidate our technical thoughts and may take gold towards its major support at 1273-77 area.
Please have a look in a 4 hour time frame chart below, i have mention possible next movement diagram , with support and resistance lines for better technical understanding.
4 Hour Gold Chart
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Mati Ur Rehman
Gold Analyst @ Dailygoldanalysis.com
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