Good Morning Forex Friends
Gold is trading in support zone i mention in previous analysis.Weekly candle closing indicating confusion between bulls and bears.Our main target and trend is bullish unless market move below the main support that is 1191-93 level.We will look for buy entry from every dip.This week we may see some correction.I am sharing 2 different time frame chart analysis to give my view.Please have a look
Daily Chart Analysis
Friday closing candle stick was below the resistance.It seems price may give us a low before heading upward.Couple of reversal candle and bearish divergence also indicating some bearish move.We may get better price to buy gold.Next support is at 1241-44 and then 1224-25 level.Main support of daily time frame is at 1191-93 level.Movement below the main support will invalidate bullish thought.If daily candle close above 1265-67 , this will confirm the resistance break and we will buy from that level with target 1281-83 and then 1301 in extension.Longer term target for gold is 1370-90.
4 Hour Chart Analysis
Main resistance in 4 hour time frame chart is at 1267-71.This will be the watching area if we get closing above this level in 4 hour chart.We will buy gold.If gold move lower we will buy from the dip to get better price.So wait for the resistance break or support level to enter the market.I mention support and resistance area in the chart below.
Buy if gold break its resistance at 1267-71
Stoploss below the resistance that will become support.
take profit 1291-93 ( Close half position and move stoploss to entry point )
Take profit 2 : 1301-03 ( Close full position )
If gold break its support then we will look for buy entry from the low.I will update the analysis if we get better price.
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