Good Morning Metal Lovers
Gold struggle to break the resistance and give reversal with a new low at 1215-16.The situation is still unclear, As long as gold is moving below the resistance, we couldn’t jump in the market for bullish trade.We will still look for buy entry from the support area or after the break confirmation.I am sharing different time frame chart analysis to give logical view about gold possible next move.Please read the analysis below.
Weekly Gold Technical Analysis
As discuss in your previous analysis , we are bullish in gold until gold is moving above the support that was previous resistance of descending channel.This descending channel broke few weeks before.It was forming since last 3 years.After resistance break we set our mind technically to remain bullish in gold for target 1370-90.We are looking for buy entry from the support level.If gold couldn’t follow the support and break below 1191-93 in weekly chart we will consider it a fake break and will change our bullish thoughts accordingly.I have mention support , possible buying area and the target level in the weekly chart below.Please have a look.
Weekly Chart Analysis
Daily Gold Technical Analysis
Yesterday closing was indicating more bullish movement if gold move higher to 1236.It was not happen and gold give reversal from 1230 and give a new low at 1215.Today closing was at 1222-23 level with small bearish candle.Situation is still not clear in daily time frame chart.We will remain neutral in the market today until we get any logical confirmation.If gold move high above 1233-36 level, we will jump in the market for bullish move with target 1249.If gold move lower , we will look for buy entry from the support 1201 or 1191-93 in extension.Movement and closing below this level will invalidate out bullish bias.We will change our thought from bullish to bearish if we get weekly and daily closing below 1191-93.I have mention support, resistance and invalidation point in the chart below.
Daily Chart Analysis
4 Hour Gold Technical Analysis
Very clear descending channel forming in 4 hour chart since last few days.Gold is struggling to break the resistance of descending channel , but fails twice. 4 hour support is at 1215-16 , if gold break the support we may see gold towards next support that is around 1191-93.If gold break the resistance of descending channel that is become 1129-31 level now, we will enter in the market after the confirmation of break.Please keep in mind we consider break after the closing of candle stick.So if 4 hour candle close above the resistance we will enter for bullish trade with stop loss below 4 to 5 points below the broken resistance that may behave as a support.Gold bullish target may 1249-51 and 1269-71 in extension.I have mention support , resistance and possible target areas in the chart below.
4 Hour Chart Analysis
1 Hour Gold Technical Analysis
I love 1 hour time frame chart because it gives us early signal for possible next movement.Gold is trading near to its resistance level that is 1227-31 area in 1 hour chart.This could be the watching area for possible break or reversal.If gold fail to break the resistance , then the next support may at 1211-13 level.If gold break the resistance then the possible next target will be at 1249-51 and 1269-71 in extension.I Suggest you to keep an eye on 1 hour chart to catch the break movement or possible reversal.I have mention resistance and support area in the chart below.Please go through with the chart,be patience and enter in the market after the confirmation.
1 Hour Chart Analysis
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Mati Ur Rehman
Gold Analyst @ dailygoldanalysis.com