Daily Gold Analysis 6th May 2016
Good Morning Gold Lovers
Gold is trading in a small range between 1284-85 to 1270-71.Gold fail to break the resistance yesterday and price move in the range.Picture is not clear and we still have two different thoughts with confirmation points.I am sharing different time frame chart analysis to give my logical view.Please read the analysis written below.
Weekly Gold Analysis
We are bullish in gold in weekly time frame chart.Gold is forming possible rising channel in weekly chart.Support of channel is at 1251-55 area and resistance is around 1315-17.Current market price is 1277-78 area.Gold longer term target for bullish move is 1370-90.Movement and closing below 1251-55 will invalidate our bullish thoughts.If gold move lower without testing the resistance level then we will look for buy entry from the support around 1251-55.If price move up without testing the resistance then we will look for weekly closing above 1301-03 to confirm our bullish idea.We share weekly chart to get the big picture , We will see daily and hours charts to get the possible entry points.I am sharing weekly chart below , Support and resistance and invalidation points are mention in the chart.
Weekly Gold Chart
Daily Gold Analysis
In our yesterday gold analysis we were looking for break confirmation above 1287-88 level.Gold touch these level but reverse back to touch the support again and close with small spinning top candle stick.There is still confusion between bulls and bears in daily time frame chart.If price break and close below the support 1270-71 , it will be indication price may touch next support level 1263 and 1251-55 in extension.If price bounce again from the support 1270-71 , then we will look for closing above 1287-88 to stay in confidence with bullish move.We will pick 4 hour chart to check early confirmation of break.Please see the daily chart below , i have mention support and resistance area.
Daily Gold Chart
4 Hour Gold Analysis
After break the rising channel in 4 hour time frame chart, price reverse back and close inside the rising channel again.We are expecting it will bounce back and break the resistance again.Previous 4 hour closing candle is hammer , giving us thoughts to look for bullish moves.4 hour candle closing below the support area 1270-71 will change our thoughts in short term basis.I am sharing some confirmation points and watching area for possible next move.If price bounce , break and close above the resistance 1287-90 in 4 hour time frame chart, We will jump in the market for bullish move with target 1301-03.Alternately if price move lower , break and close below the support 1270-71 then we will enter for bearish move with minimum target 1263 and 1251-55 in extension.Please keep in mind we will consider confirmation of break after the closing of 4 hour candle.If price break resistance it will become support and if price break the support then we will consider support as a resistance for our stop loss.Please see the 4 hour time chart carefully to spot support and resistance areas with target points.
4 Hour Gold Chart
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Mati Ur Rehman
Gold Analyst @ dailygoldanalysis.com