XAU USD Forex Trading Idea ( Possible Divergence Forming In 4H Gold Chart )
Possible bullish divergence forming at 4-hour time frame gold chart which is the earliest signal for the trend change.Divergence is one of the good and strong signals for the trend reversal.
Price move lowers yesterday and bounces again after hitting 1160 level.Our target 1155 again not met in yesterday session but the bottom around 1160-61 was indicating the trend may over.Divergence forming at 4-hour time frame chart giving more confidence in reversal signal.We will look for buy entry after the break of resistance around 1177-81 area. This divergence invalidation area is around 1149-50.Bullish minimum target is 1205 and maximum at 1219-21 in 4-hour time frame chart.
Please have a look at 4H chart below , I have mentioned the divergence and channel resistance area.
Happy Trading and have a nice weekend ahead.
XAU USD Forex Trading Idea ( Update 1st Dec 2016 )
The Bearish movement was expected in the yesterday gold technical analysis.The gold move lowers according to the expectations and hit a low around 1161-62.Our target was 1151-55 which is not met yet.We are still expecting a 0little bit more downward movement to complete the bearish final target at 1151-55 which is also the weekly support in longer term time frame.I am sharing update chart below with the possible movement diagram.
Alternately: If gold move above and break the descending channel resistance which is mention in the gold hourly chart below.It will be the earliest indication of a 0trend change.The gold bullish target may 1219-21 after breaking the resistance.Movement above 1177 will confirm the break and price above 1201-05 will add more confidence towards bullish thoughts.
XAU USD Gold Hourly Update0 Chart
We expected bearish move yesterday , price move down but bounce from the initial support area 1181-82 and trading again at resistance zone.The trend is still bearish and we are still expecting the bearish move from current market gold price which is 1188-89.The bearish final target may at 1151-55 which is the extreme support of trend.1151-55 is also the resistance zone of the previous broken ascending channel in weekly time zone.I am sharing alternate in the chart below.If gold breaks the resistance of descending channel in hourly time frame chart.It will be the early indication for bearish invalidation and may take gold towards the 1219-21 minimum.Resistance is forming at 1193-95 area.Break and closing of 1193-95 will invalidate the bearish thoughts in the hourly time frame.Movement and closing above 1205 will give more confidence to bulls.We will only take buy trade after the break of initial resistance 1193-95.Please keep in mind we will consider break after the closing of an hourly candle.Please have a look in a chart below.I have mention possible movement diagram with invalidation zone.
Hourly XAU USD Gold Update Chart
XAU USD Forex Trading Idea
The bearish target in previous analysis was 1169-71 which was done in previous week movement.The trend is still bearish and it may remain bearish until price will touch its extreme support around 1151-55 area.We will take bullish trade only if price breaks the resistance areas which is mention in the analysis written below.Please go through the XAU USD Forex Trading Idea,written below.
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XAU USD Forex Trading Idea ( Weekly )
The overall trend is bearish in weekly time frame chart.Next and possible final support is forming at 1151-55 which is also the resistance of descending channel that was broken a couple of months before . So that resistance will act as a support now.We are expecting a clear bounce from the support area 1151-55 towards 1249-51.We will not take any bullish trade until price will touch the support level.Alternately if gold move and close above 1205-09 area in weekly closing, It will be the earliest confirmation of trend change and may take gold towards 1249-51.Please have a look at a weekly gold chart below, I have made a possible movement diagram and bearish invalidation zone.
XAU USD Forex Trading Idea ( Daily )
Gold is in the bearish move from a couple of days.Previous daily closing and couple of reversal candles are indicating bullish move soon.The main resistance in daily time frame chart is at 1205-07 level.Movement and closing above 1205-07 in daily time frame chart will confirm the bullish movement and may take gold towards 1249-51.The main trend is bearish and we are not taking any bullish trade until we get the proper confirmation.According to bearish trend , the next support is forming at 1151-55.It is most likely price may give more bearish move towards 1151-55 which may b the best buying zone.My suggestion is to stay neutral and wait for the break or support zone to catch the big move.Please have a look at a daily time frame chart below, I have mentioned the possible next movement diagram with invalidation zones.
XAU USD Forex Trading Idea ( Hourly )
We love to share hourly chart because it gives us earliest signal and the closest picture of movement or trend.Gold is moving in a descending channel on an hourly time frame chart.Next support of descending channel is forming around 1251-55 or 1259-61 depend on the volatility of movement.Bearish confirmation line is mention in the chart below for better understanding.Alternately we will have to look either it will give reversal from the resistance or move up to break the resistance.Movement and closing above the resistance will give the earliest thought for trend reversal and if gold move above 1205-07 with 4-hour closing, it will be the confirmation of trend reversal.Gold minimum target after the resistance break may b 1231-33 and maximum at 1249-51.
Support & Resistance
Hourly Support : 1281-82
-Hourly Resistance : 1193-95
Daily Support : 1181-82
Daily Resistance 1205-07
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