Good Morning Forex Friends
Gold is trading near to its support zone and current market price is 1212-13.Overall picture is not clear.It can bounce towards 1231-35 area or it is also possible gold can touch its next final support 1190-88 before bounce.I am sharing different time frame chart analysis and confirmation points to predict next possible move.Please go though the analysis written below.
Weekly Gold Analysis
We are looking for bounce in gold from its support level.We are bullish in gold as long as price is respecting major trend support around 1190-88 area which is also the support line of previous broken descending channel.Movement and closing inside the channel will invalidate overall bullish thoughts.We are expecting bounce from 1190-88 towards 1233-35.Movement above 1235 will give more confidence and it will also the confirmation of bullish continuation pattern.If gold fail to touch the extreme support and bounce, then we will look for buy confirmation above 1235.Please see the weekly chart below, i have mention possible next bounce area with invalidation zone.
Weekly Gold Chart
Daily Gold Analysis
Gold made a new low around 1199-1201 area in previous days sessions and bounce back with current market price around 1212-13.Major daily support is forming at 1190-88 level.We have two different thoughts and confirmation points.If gold bounce from current level then we will look for confirmation of buying entry after the break of 1233-35 area which is immediate daily resistance area.It is also possible gold can touch this level and reverse back for the new low around 1190-88.Movement and closing above 1235 level will give confirmation of buying with minimum target 1251-55 and 1269 in extension.Alternate if gold move lower without bounce and touch support level 1190-88 , this will be the best buy opportunity with stop loss below the weekly descending channel.Please have a look in a daily time frame chart below.I have mention possible next movement diagram with invalidation zone.
Daily Gold Chart
4 Hour Gold Analysis
We can pick early movement and confirmation watching 4 hour time frame chart.It seems gold is bounce towards its first resistance in hourly chart. Immediate resistance in hourly time frame is forming at 1221-22 level and next buying confirmation resistance is around 1233-35.We are expecting one more dip before clear bounce.Gold may touch 1221-23 level and can give reversal to touch major support at 1190-88 area which is the final bearish area according to our analysis.We will look for buy entry from the support 1190-88 with target 1233-35 and 1251-55 in extension.Movement and closing below 1190-88 in weekly time frame will invalidate our overall bullish thoughts.Alternately if gold fail to touch the support and bounce straight away.Then we will watch 1233-35 area for break confirmation for bull entry.Please see the hourly chart below.I made a diagram of possible next movement in hourly time frame.
4 Hour Gold Chart
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Mati Ur Rehman
Gold Analyst @ dailygoldanalysis.com