Good Afternoon Forex Fantasies
Yesterday closing in daily time frame chart was bearish engulfing but close above the resistance make the confusion to remain bullish or change concept to bearish move.Today i am sharing 2 different time frame chart analysis and confirmation invalidation points to get the better idea.Please have a look.
Daily Time Frame Chart
Yesterday closing above the resistance and bearish engulfing candle stick with MACD cross over to negative indicating a bearish move may hold the market.We will have to look for confirmation to jump in the market.I suggest to wait to today closing we we get movement below the support area around 1241-45, we will sell gold.If closing .If gold still follow the support and give closing above the support 1241-45 we will remain bullish from the support area.Please have a look at daily time frame chart.I mention the watching area.
1 Hour Time Frame Analysis
Rising support in 1 hour time frame still validate the bullish thoughts.As long as gold is following the support we cannot sell the gold.We will look for the sell entry if gold break the support area and close below the support.And if gold bounce from the support area and move above the resistance zone, we will buy gold after breaking the resistance.I mention support and resistance zone in the chart below.
Trade Reccomendation :
Stay neutral today and wait for daily closing.If we get closing below the support we will Sell , Close above the support may give bullish signal again.
Never risk more then 2 % of your account in single trade.Always trade with proper risk management rule.
Feel free to comment below if you have any concern regarding charts and analysis.Your feedback is always welcome.
Wish you good luck & Happy Trading
Mati Ur Rehman
Gold Analyst @ forex.today