Good Afternoon XAU lovers
In our past couple of analysis, we predict XAU gold may touch 1217-21 level. Gold move exactly according to the bearish expectations.In our previous posted analysis, we were expecting bounce before a new low.It was not happen and price break its support and move directly to our alternate bearish move and hit both bearish targets 1249 and 1217.i am expecting little bit more downward movement after a small a correction today.I am sharing three different time frame XAU chart analysis to give my logical view about gold next move.Please go through the analysis written below.
I suggest you to read couple of few previous analysis to see how we predict gold.Below is the link of previous analysis.
Weekly Gold Prediction
After breaking the trend support in weekly chart couple of week before, we change out thoughts from bullish to bearish and set out target which was minimum 1249 and maximum 1217.Gold met its extreme target in previous week movement.According to the weekly time frame chart , it is still expected more bearish move.There is still enough momentum in gold which may take gold towards next support level minimum 1201 and maximum 1151-55 which is the support of descending channel that was broken in few months before.So the weekly watching area is 1201-05 , If gold fail to bounce from this area , then we will look for buy opportunity from the extreme support area which is 1151-55.Please have a look in a weekly gold chart below.I have mention two bounce areas.I suggest you to wait for these areas to confirm the bounce in weekly overview.We will look daily and hourly charts to get the earliest signal.Please see the weekly chart below.
Weekly Gold Technical Chart
Daily Gold Prediction
After breaking the support area around 1267 in previous week session, Gold hit both bearish target and moving towards its daily support level.I believe gold may give little bit correction and continue move towards its daily support level which is 1201-05 area.If gold continue fall then the best area to watch for bounce is 1201-05.Movement and daily closing below 1201 will be the earliest signal for contusion of down trend and may take gold towards its final and extreme support around 1151-55 level.I suggest you to wait for better price to jump in the trade.Clear signal for bounce from the support will be the confirmation of bullish trade towards minimum 1241 and maximum 1267.We need full bullish candle or reversal pattern in daily chart to get the bullish entry point.Please keep in mind daily closing below 1201 will take gold towards next extreme support level 1151-55 which will be the best area to buy gold.We will look for hourly chart to get the earliest reversal signal.Please have a look in a daily chart below, i have mention possible bounce area and watching area in a red line.
Daily Gold Technical Chart
4 Hour Gold Prediction
We always love to share 4 hour chart , because it gives us earliest signal weather to ride or stay away from the market.After break the support in hourly chart , gold is moving towards its support level.Current market price is 1214-15 , little bit correction is expecting before a new low.This correction may end around 1231-33 area maximum and then it may continue fall towards hourly support level 1201-05 area.We need bounce signal from the support 1201-05.Please keep in mind, if gold to bounce from the support, then we may get the best price from next support level which is 1151-55.we have a look weather gold will make bottom for buyer and hold its movement from the support or it may break towards new low.I suggest you to wait for confirmation before jumping in.Please have a look in hourly chart below, i have mention possible next movement diagram and alternate scenario.
XAU Support & Resistance
Hourly Support : 1201-05
-Hourly Resistance : 1231-33
Daily Support : 1201-05 and 1151-55
Daily Resistance 1267-71
Invalidation : Movement and closing below the support line which is mention in the red color in above chart will invalidate this hourly technical point of view.
Note: Never risk more then 2% of your account capital in single trade.Always trade with proper risk management plan.
Feel free to comment below if you have any concern regarding charts and analysis.Your feedback is always welcome and help us to improve.
Wish you good luck and happy trading
Mati Ur Rehman
Gold Analyst @ Dailygoldanalysis.com