Good Morning Metal Riders
We were looking for break yesterday to jump in the market.Gold move higher at 1236.50 then reverse back and close below the resistance.Situation is still unclear, We are still looking for confirmation to ride in the market.I am sharing different time frame thoughts to give logical view about possible next move.Please go through the analysis below.
Weekly Gold Analysis
After breaking the descending channel couple of week before , we set our thoughts to remain bullish in gold un till gold is trading above the support that was previous resistance of descending channel.Gold major support is at 1191-93 level.Gold may bounce from the support or above from the support.Movement above 1237 will give some confidence and closing above 1280 in weekly time frame will give more confirmation to remain bullish in gold.Gold long term target is at 1370-90.If gold fail to bounce from the support and close below the support, we will consider previous break as a false break and will change our thoughts accordingly.Please see the chart below , I have mention support and resistance area.
Daily Gold Analysis
Daily candle stick closing is indicating some more bullish movement today.Yesterday high is at 1236.50, Movement above this level will be the indication to achieve the daily next target that is 1249-51 and 1269-71 in extension.Please keep in mind we are bullish in gold untill price is above the support zone 1191-93.Movement and closing below the support in daily and weekly time frame chart will invalidate our bullish thoughts.If price move lower we will look for better price to enter the market.Gold next support is at 1211-13, Second support may 1201-03 and third and final main support is at 1191 level.I have mention support and resistance area in the chart below.Please have a look.
4 Hour Gold Analysis
Gold is trading in a range of descending channel that is forming from couple of days.Struggling at resistance indicating a confusion between bulls and bears.If gold break the resistance we will jump in the market after the break.If gold fails to break the resistance , then price may reverse and give us a new low around 1201-03 or 1191-93 in extension.This area is also a support of descending channel and trend support of weekly chart. Movement and closing below 1191-93 will invalidate our long term bullish view.
4 Hour Chart
1 Hour Gold Analysis
1 hour analysis always give us close picture for possible break or reversal.Gold is trading at resistance zone of 1 hour chart, Tried to beak the resistance twice but it was not happen.Gold give high yesterday above the resistance but close below invalidate that move.We are still looking for break to jump in the market, or possible reversal to get better price to ride.If gold fail to break the resistance, we may see gold more lower at 1201-03 level or 1191-93.That may b the best area to buy gold with invalidation 5 , 7 points below the main support.Alternate we can buy after the break around 1235-37 level with target 1249-51 and 1269-71 in extension.So keep an eye at 1 hour chart for possible next entry.I have mention some support and resistance levels in the chart below.Please have a look
1 Hour Chart
Note : Please wait for the confirmation of break.Confirmation depends on closing of 1 hour or 4 hour candle stick.First target after break confirmation may 1247-51 and second target may 1267-71.If gold reverse from the resistance then we will look for buy from next support level 1201-03 or 1191-93
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Mati Ur Rehman
Gold Analyst @ dailygoldanalysis.com