Daily Gold Analysis 24th Oct 2016
Good Morning Forex Traders
In our previous forex trading gold analysis Daily Gold Analysis 20th Oct 2016, we were looking for more upwards movement to complete the correction in hourly and daily charts.Gold fail to give more high and reverse back towards its support level around 1258-59 and close in weekly session around 1266-67 area.Weekly closing is bullish and we are still looking for more upward movement this week with some invalidation points.I am sharing 4 different time frame chart analysis to give my technical view about gold next moves.
Weekly Forex Trading Gold Technical Analysis
We change our thoughts from bullish to bearish , after gold break its rising support in couple of previous week session.Last week candle closing is bullish which indicate the correction towards the broken support area that become resistance now.( As per technical forex trading rule , support before resistance after the break). We believe gold may give correction towards the resistance area minimum 1281-83 and 1297-97 in extension and then it may give a new dip towards next support area around 1201-05.Break and close above the resistance will invalidate the bearish thoughts.Please have a look in a weekly chart below, i have mention possible movement diagram with invalidation area.This chart will help you understand and predict next movement in gold.
Daily Forex Trading Gold Technical Analysis
We are looking for correction in gold from couple of days.Friday candle closing is doji which indicates cofusion between bulls and bears in gold.Gold may give little bit more downward movement before a correction bounce.Downward movement may end around 1257-59 area which may b the best area of buyers intrest.Correction minimum target is around 1281-83 and maximum at 1295-97.Movement above 1301-03 will invalidate the longer term bearish thoughts.Otherwise we will looking and expecting a new dip towards 1201 after the correction.Please have a look in a daily technical gold chart below, i have mention next movement diagram with invalidation points.
Forex Trading 4 Hour and Hourly Gold Analys
We were expecting a new high at friday session.Gold fail to give more high and reverse back with closing around 1266-67.We are still expecting upward movement before a new dip.It may give bounce from 1255-58 area towards 1281 and 1295-96 in extension.Please have a look in 4 hour and hourly chart below.I have mention possible movement diagram in the charts below.
4 Hour Gold Chart
Hourly Gold Chart
Gold Support & Resistance Today
Hourly Support 1255-58
Hourly Resistance 1271-73
Invalidation : Movement and closing below 1245-43 will invalidate our correction thoughts and may take gold directly towards its bearish target 1217 and 1201.
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