Good Morning Gold Lovers
I hope you enjoy the weekend.
Friday analysis we were expecting and waiting for the support to get buy entry.Gold move lower after NFP news and bounce from 1211-13 area.This is what we were expecting.In today analysis i am sharing different time frame charts to get idea for possible next move for this week.I am also adding alternate scenario today.
Weekly Gold Overlook
Gold is in correction mode after breaking the descending channel that was forming since last few years.This break indicate bullish move with first target at 137-90.The question is what is the best level to buy gold for this target.Gold main support is at 1291-93.For longer term trade i am expecting a bounce from 1201 or 1191-93 level with invalidation 5 , 7 points below 1188.Target is at 1370-90.Movement and closing below 1188 in weekly time frame chart invalidate our bullish thoughts and we may consider a fake break if we get movement and closing below the main support level.I have mention the support , invalidation and weekly target area in below chart.
Daily Gold Over look
Gold is trading , current market price at 1219 level.Friday movement gold give a low 1208-09 and bounce from that area.1211-12 was the bouncing level in previous analysis.If we look at daily candle stick we may see some more downward movement before heading up.Gold may touch 1201-03 level and this could be the best buying level for next possible target at 1231-33 .Movement and daily closing above 1233 level will give us confidence to remain bullish in gold.Daily resistance is at 1269-71.Gold trend support is at 1191-93.Movement and closing below this level will invalidate out bullish point of view.I have mention support and resistance area with invalidation points in the chat below.please have a look
4 Hour Time Frame Chart
4 hour time frame chart give us better picture to predict the market and spot entry and exit points.In 4 hour chart gold is moving in a descending channel.We will wait for the better price to jump in the market for short term buy.The best buy area in 4 hour chart is 1196-1201 with stoploss below the support line.If gold fails to touch the support and bounce above then the best watching level is at 1231-37 area.if gold break 1237 area and close above in 4 hour chart.we will consider broken resistance as a support level for next buying entry with target 1269-71.I have mention support and resistance area in a chat below.I suggest you to wait for the confirmation before jump in the market.
4 Hour Chart
1 Hour Time Frame Chart
I always look 1 hour time frame chart to catch early trend or early possible jumping level.Gold support in 1 hour time frame is at 1211-13 level and the next and final trend support is at 1191-96 level.Resistance is at 1231-37.We will have to wait and look for buy entry from the support or after break the resistance.I suggest you to watch the market in 1 hour time frame chart and look possible buy entry from support.if gold fail to touch the support then the best watching area is at resistance level.If gold break the resistance we may see gold at 1269-70 area . If gold fail to break the resistance then gold may give a new low below 1211 or 1201-03 in extension.I have mention support and resistance area in the chart below.
1 Hour Chart
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Mati Ur Rehman
Gold Analyst @ dailygoldanalysis.com