Good Morning Gold Riders
Gold is trading below the resistance, Rejections from the resistance and couple of reversal candles indicating gold is ready for correction for few days in a weekly , daily and hourly charts.Current market price of gold is around 1336 which is weekly closing of friday session.In our last week analysis of gold , we were expecting bearish move in gold and our invalidation area was 1355-56 in daily time frame chart.Gold touch its resistance or invalidation point in previous week movement but fail to break and reverse back.We are still expecting bearish move in gold and we spot some invalidatation and confirmation points in weekly , daily and hourly charts.I am sharing my gold technical analysis below.Please go through the analysis written below.
Weekly Longer Term Gold Predictions
Gold is in buying mode after the break of descending channel couple of months before.We are bullish in gold for longer term analysis.Gold is moving in a higher high and lower high direction.Couple of reversal candle in weekly chart indicating a correction and this correction may end around 1281-83 level where the support is forming.Movement below 1329 will confirm the correction with minimum target 1311 and maximum 1385.Alternately if gold reverse back and close above the previous resistance, it will invalidate the correction thoughts and gold may hit 1417-21 level without correction.Longer term target for gold is 1431-33.Please have a look in a weekly gold technical chart, I have mention possible movement diagram in it.
Gold is trading near to its support zone in daily time frame chart.Friday closing below the support of rising channel indicating more selling in next couple of days.Movement below 1330 will confirm the break and gold may hit minimum 1311 and 1301 in extension.Weekly gold support is forming at 1281-83 , which could be the best buy area if we get the minimum price.Alternately if gold bounce back and close above the support again , then we will look for the break of resistance 1355-56 area to buy gold.Our suggestion is to wait for the break of 1330 to catch the bearish move in gold.Please see the daily chart below, I have draw possible movement diagram of gold chart for better understanding.
4 Hour Gold Technical Chart
4 Hour gold chart helps us to catch early confirmation of movement.Gold is forming Symmetric trinagle in 4 hour time frame chart and trading near to its support zone.The beauty of symmetric triangle is it can break anywhere either upside or downside.We will have to look the break confirmation before enter in the gold trade.If gold break and close below the support of symmetric channel in 4 hour candle, we will jump in bearish trade with target 1311 , 1301 and 1285 in extension.Broken support will act as a resistance as per technical rule and help traders to set the stoplosses.Alternely if gold fail to break the support and bounce , in that case we will look for the resistance area to see the break for buying gold.Please have a look in a 4 hour time gold techical chart.I have mention possible bearish movement diagram with invalidation and target area.
Please note , we will consider break after the closing of 4 hour candle.
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Wish you good luck and happy trading
Mati Ur Rehman
Gold Analyst @ Dailygoldanalysis.com
Email : [email protected]
Skype : mati_ji