Good Evening Forex Friends
Yesterday analysis we were expecting some downward movement. Thats not happen and price break and close above the resistance and invalidate our bearish thoughts.Now the resistance become support.We will look for buy entry from the dips.I am sharing two different time frame chart analysis with invalidation points to give my view.
Daily Chart Analysis
Wednesday closing above the resistance invalidate our bearish thoughts.Price move high at 1271-72 level and did some correction today. Daily closing today is at 1256-57 level but still above the support that is around 1247-51 area.Now we have two different thoughts for next move.If price follow the support and bounce we may see gold at 1291-93 level and 1301-03 in extension.If friday closing will below the support we may consider previous break as fake move and look for sell entry.I suggest you to enter the market after the confirmation.Friday closing will give confirmation for next week move.So please stay neutral in the market and wait for the confirmation.I mention support and resistance area in a chart below.
4 Hour Chart Analysis
After break the resistance in 4 hour chart.Price is in process of some correction.Now the question is where this correction will end. The resistance become support at 1251-55 area.If price break the support , then the next support is at 1231-33 area.If gold follow the support and bounce then most probably the next target may 1291-93 for gold.4 hour closing below the support will invalidate the bullish thoughts.So the watching area is 1251-55.Please have a look in a chart below, i labeled support and target area.
Trade Reccommendations :
Weekly candle is still at the resistance level.We have to see closing of weekly candle.I suggest you to stay neutral and wait for the confirmation.Watching area is at 1251-55, i will update once i get proper confirmation of buying gold.Closing below the support will give bearish thoughts.
Never risk more then 2% of your account 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.
Wish you good luck and happy trading
Mati Ur Rehman
Gold Analyst @ forex.today