Good Morning Gold Lovers
In our previous analysis we were looking for the support area 1350 for bullish rally.Gold move lower but fail to bounce from the support and turn lower in yesterday session.Daily and 4 hour closing was below the invalidation area which indicates possible bearish moves for next couple of sessions.Now we have to change our thoughts from bullish to bearish for short term basis.Longer term trend is still bullish with target 1413-17.But in shorter time frame we will look for bearish move from the broken support area that become resistance now.I am sharing 3 different time frame chart analysis to give my logical view about gold next move.Please read the analysis written below.
Weekly Gold Analysis
Gold was moving in a rising channel since few weeks.Previous week closing was above the resistance of rising channel which gives us thoughts to set next bullish target at 1413-17.This week we can see overall bearish move in weekly candle which may invalidate the bullish target in short term basis if weekly candle close inside the channel again.If its happen then gold next gold may touch its rising support again.Target 1413-17 is still valid , but we may see gold at the support area before the new bounce.Please keep in mind weekly bearish move will only confirm if gold close below inside the rising channel support which is forming around 1333-40 area.Please have a look in weekly time frame chart below , i have mention rising support area for better understanding.
Daily Gold Analysis
Previous analysis was expected a bounce from the support at 1359-51 area, which was not happen and gold break its support zone in yesterday session.Closing below the support also invalidate bullish thoughts for short term basis in daily time frame chart.Technically the support become resistance for next bearish move now.We will look for bearish move from the resistance area for the target 1301-03 and 1280 in extension.Alternately if gold move above and close above the resistance area which was previously support, then it will indicate the false support break and target will be the same as previous analysis 1413-17.Please watch the resistance area closely to get the confirmation.we will look for hourly charts for the early confirmation.Please have a look in a daily time frame chart below, i have mention possible watching area in the chart.
4 Hour Gold Chart
Hourly chart always help us to predict and catch early moves and confirmation.Gold break below the support in yesterday session in 4 hour chart.Now the support become resistance and we will have to look the resistance area for reversal or break again.According to daily time frame chart,more bearish move is expecting, If gold give us a reversal signal from the resistance area 1343-47 , we will look for sell entry from resistance with minimum target 1323-21 and 1301-03 in extension.Alternately if gold break the resistance in 4 hour time frame chart, then we will look for break confirmation around 1253-55 area for the target 1385.Please have a look in 4 hour time frame chart below, i have mention possible movement diagram for better understanding.
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Mati Ur Rehman
Gold Analyst @ Dailygoldanalysis.com
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