Daily Gold Analysis 2nd May 2016
Good Morning Forex Friends
We were expecting upward movement with target 1277-81.Gold move exactly according to our expectations and give new high around 1296-97 at Friday.Our main thoughts are still bullish but expecting little correction before heading up.Gold may also trade in a range or in consolidation phase before a new high.I am sharing different time frame chart analysis to share my thoughts about gold next move.Please read the analysis written below.
Weekly Gold Forecast
As per our previous analysis we are bullish in gold and our main target is 1370-90.Friday movement and closing above 1283 gives us more confidence towards our target.I have spotted possible early rising channel pattern in weekly time frame chart.Resistance of triangle is at 1317-21 level and support become 1265-71 level.Now we will have to look for confirmation of this channel.If gold move high without testing the support then it may reverse from 1317-21.Alternate if gold reverse back from current level then 1265-71 area will be the best area to buy gold again for weekly targets.Please keep in mind we share weekly chart to check overall trend of the market and invalidation points.We will see daily and hourly charts for exact entry and exit points.Please see the weekly chart below.I have mention possible correction , buying and longer term target zone.
Weekly Gold Chart
Daily Gold Forecast
After breaking the resistance of 1277-81 , gold made new high around 1206-97 at Friday session.As per the technical rule when resistance break , it may behave as a support for buyers.Now 1281-83 is the physiological support for bulls in daily time frame chart.Gold can also move sideways or in consolidation phase for couple of days before new high.We will look for buy entry from the first support around 1281-83.If gold fail to test the support then technically we will jump in the market after the break of Friday high at 1296-97.I suggest you to stay neutral to get better entry point with confirmation.I have mention possible buying area with target in the chart below,Please have a look.
Daily Gold Chart
4 Hour Gold Forecast
Gold was trading in a range of rising channel from couple of days in 4 hour time frame chart.Friday movement break the channel from upside and closing above the channel confirm the break.As per technical rule we will remain bullish in gold as long as price is above the channel support that was previous resistance around 1277-81 level.We set our next target by calculating the size of channel in 4 hour time frame chart at 1317-21.Better to stay cool and watch the market to test the support area again.We may get better price to enter in the market for next bullish rally with target 1317-21.Please note movement and closing below the support will invalidate hourly bullish expectations.For your better understading i mention support and target area in the 4 hour chart below.
4 Hour Gold Chart
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Mati Ur Rehman
Gold Analyst @ dailygoldanalysis.com