Good Afternoon Fx Trading Lovers
In our yesterday fx trading gold price analysis, we were expecting reversal with minimum target 1285 and maximum 1271-73.Gold move lower in yesterday session and hit our first bearish target but bounce back towards its recent resistance area.It seems gold is struggling to give more bearish move and moving near to its resistance level.Today we have two different thoughts for gold next predictions.I am sharing 3 different time frame chart analysis to give my logical view about gold next move.Please go through the analysis written below.
Before reading today analysis, please have a look in previous analysis to check the history of our predictions.
XAU/USD Gold Price Technical Analysis 3rd Nov 2016
Gold Price Today 31st Oct 2016
Fx Trading Gold Daily Technical Analysis
In the daily chart we can see the couple of reversal candles and closing twice below the resistance area creates confusion between buyers and sellers to predict next move.Watching area is around 1301-07 in daily time frame.I believe if gold move above and close above the previous high 1307-09, then it will be the indication for more bullish move towards minimum 1317 and maximum 1325.Movement and closing below 1291-93 will confirm the reversal pattern and may take gold towards its next support around 1273-77.We will look for 4 hour and hourly charts to get the entry and exit points.Please have a look in a daily gold chart below, It is showing the overview picture and confirmation areas for next movement.
Fx Trading Gold Daily Chart
4H and Hourly Gold Technical Analysis
4 Hour & Hourly Charts always give us close view and earliest entry of exit points.In 4 hour chart , price is moving in the resistance zone around 1301-05 area.I have mention the resistance and support line in the 4 hour chart below.If we get 4 hour closing above the resistance , it wil be the signal for bullish move towards 1317 and 1325 in extension, where as if gold move below and break 1291-93 area, it will be the earliest signal for bearish move for target 1381 and 1273 in extension. If we look in Hourly Chart , clear symmetric triangle is forming in 1 hour time frame chart, which will help us to get the immediate signal for buying or selling.Rule is the simple in symmetric formation, Closing above the resistance in hourly chart will take gold towards 1317 and 1325 in extension , Movement and closing below the support line of symmetric triangle in hourly chart will be the confirmation for bearish move towards 1280-81 and 1273 in extension.Please see the 4 hour and hourly chart below and trade accordingly.
4 Hour Gold Chart
Hourly Gold Chart
Note : We are neutral until we get clear confirmation of break in symmetric triangle formation.We will be in bearish move if gold support the break in hourly chart, or may b bullish in gold break its resistance in hourly time frame chart. Please be patience and wait for the confirmation before entry.
Gold Support & Resistance
Hourly Support : 1291-93
-Hourly Resistance : 1301-03
Daily Support : 1273-77
Daily Resistance 1307-09
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