Good Evening Forex Friends
Gold is trading at 1234-35 level after breaking the yesterday support in 4 hour time frame chart.I am expecting some more downward movement and this movement may end at 1211-17 level.I am sharing two different time frame chart analysis to give logical view about Gold.Please have a look.
Daily Time Frame Chart
Couple of reversal candles and bearish divergence forming in daily time frame chart indicating some more downward movement soon.Gold has follow the minor physiological support at 1224-25 and bounce from that area.we are looking for better price to sell again.closing above the resistance will invalidate the bearish point of view. Movement below 1224 will give more confirmation to achieve the target.I mention the resistance and support level in the chart below.
4 Hour Time Frame Chart
After breaking rising support in 4 hour time frame chart.Gold made a new low at 1224-25 that was minor support.I believe gold is in correction mood and may touch resistance again that was previous support in 4 hour time frame.We will look for short enrty again from the resistance area with invalidation above the resistance level.Main target for next move will be the same 1211-17 area.Closing above the invalidation area will change our thoughts from bearish to bullish.
Note : If gold break the resistance and close above the resistance in daily time frame chart.We may change our bearish bias and look for buy entry for target 1271-73 and 1287-91 in extension.
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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