Trading Gold Analysis XAUUSD Trading Strategy
We were looking for the break of descending channel resistance in 4-hour chart.Gold move high and break the resistance according to the expectations.Gold first target already met at 1151-55 level.We are still bullish in gold and daily closing above 1151 will give more confidence towards this bullish rally.The gold hourly target may at 1171-73, and daily resistance is at 1201-05.
Resistance will act a support now, which will also consider as invalidation zone in hourly chart.Please have a look in hourly chart below.
4-Hour Trading Gold Technical Chart Update 29th Dec 2016
4-Hour Trading Gold Technical Chart
Weekly Trading Gold Analysis
After break and close below the support area in weekly time frame chart.Gold invalidates our bullish thoughts, but at t he another end it is also in an oversold condition which creates confusion for bulls.In our today weekly chart, I spot the confirmation point to get the logical idea how gold will behave in next couple of weeks.1151-55 The area is the resistance now, which was previously strong support.It is expected gold will retrace back to touch the resistance again at 1151-55 area which will be the watching area for us.If gold move upside and close above 1151-55 in weekly time frame chart.It will give us confirmation of reversal, and we will look for bullish trades for a couple of next weeks.Gold minimum target after the resistance break may 1191-93.
At the other end if gold fails to touch 1151-55 area and reverse back, then the next support is forming at 1112-13.
Please have a look at a weekly gold chart below.My XAUUSD Trading Strategy is tagged in the diagram below.
Gold Weekly Forcast Chart
Daily Gold Technical Forecast
Gold is trading below the support zone after the break of trend support around 1151-55 area.Our bullish thoughts invalidate after this break.Gold made a low 1121-22 according to the alternate 4-hour chart which was shared in our last analysis.1151-55 is the watching area for gold next move.We are looking for the break or reversal from 1151-55.If we get daily closing above 1151, It will be the indication for bulls to jump in for the 1191-93 target.At the other end reversal from the resistance, 1151-55 will take gold towards new low around 1112-13.Please have a look at a daily chart below.I have mentioned possible next movement diagram and confirmation areas.
I will update the analysis; Once I get the clear confirmation of break or reversal from the resistance area mentioned above.
Support & Resistance
Daily Support: 1121-22
-Daily Resistance: 1151-55
Weekly Support: 1111-12
Daily Resistance 1151-55
Note: Never risk more than 2% of your account capital in single trade.Always trade with the proper risk management plan.
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Wish you good luck and happy trading
Mati Ur Rehman
Gold Analyst @ Dailygoldanalysis.com