Good Morning Gold Riders
Gold is trading near to its resistance at 1128-31 area.Yesterday we were expecting a correction till 1114-15 .Gold Move down and bounce back from the 1122.Price is still in a channel and the couldn’t break its physiological resistance at 1128-31.We are still expecting this correction may over around 1114-15 and we may have buying opportunity again from this level.I am sharing different time frame chart patterns to give logical view.
Daily Time Frame Chart
Yesterday daily candle closing was doji indicating a confusion in buyers and supporting our expectations for short term correction.This correction may end at 1114-1115 and the next resistance is around 1136-41 area and this area is also a resistance of longer term down trend.So we will have to wait until price breach the resistance or give a reversal signal. Immigiate support is 1110-11 and main channel rising support is around 1099-1101.Please keep in mind movement and closing below the main support area will invalidate our bullish thoughts.
4 Hour chart
We can see couple of reversal candle stick patterns in 4 hour chart indicating a downside movement.according to 4 hour chart this correction may end above 1110-1111 area.Movement below this level will invalidate the 4 hour point of view.I mention enrty and invalidation area in the chart below.We will look for buy entry from 1114-15 and the the channel resistance is become 1137-41.
1 Hour Chart
1 hour chart always give us close picture and it is also supporting our expectations.1128-29 is becoming more strong in 1 hour time frame.Price touch this level 3 times and reversing back.The invalidation , entry and target levels are same in 1 hour chart.
Note : If gold move and break the resistance 1128-29 in 1 hour time frame without complete correction.Then we may look for sell entry from 1137-41 area.We should not ignore the alternate.
Buy from 1114-15
Stoploss below 1107-06
Take profit 1 : 1128 ( Close half position and move stoploss to entry point )
Take profit 2 : 1137-41 (Close full position)
( This Alternate is valid only if price touch this level without completing the correction )
Sell limit 1137-41
Take profit 1129
Take profit 2 : 1114-15
Never risk more then 2% of your total 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.You feedback is always welcome
Mati Ur Rehman – Forex.today