Good Evening Forex Friends
I hope you enjoy the weekend and happy Easter to all of you.
Gold is struggling at its support level.Gold move lower in opening session and trading at 1219-20 level in current market price.Overall i am expecting some more down movement before heading up for a bounce.I am sharing two different time frame chart analysis to give logical view for possible next move.
Daily Chart Analysis
Major support in daily time frame is at 1191-93 level.Gold may bounce from the major support or above from the support.Today low is at 1205-06 level.Expecting one more dip then it may bounce towards 1237 and 1249 level.I suggest you to buy from the low with the target 1237 and 1249.Movement and closing below the support level will invalidate our bullish thought.As i mention in previous analysis we will change our thoughts from bullish to bearish if we get weekly closing below the main support.Daily candle stick is forming a hammer candle stick , if today closing will hammer we may consider it a early signal for buying gold.Longer term target for gold remains the same 1370-90.
4 Hour Chart Analysis
Bouncing from the declining line support and cross over the MACD indicator in 4 hour time frame is giving possible early signal to buy gold.We will wait to test the support line again to buy gold.I mention invalidation and buying zone in the chart below.Please adjust your stoploss accordingly.
Trade Reccomendations :
Buy from Support 1201-05
More Buy From 1191-95
StopLoss below 1188
Take profit 1 : 1233-37 ( Close Half position and move stoploss to entry point for risk free trade )
Take profit 2 : 1247-49 ( Close full position )
Longer term target for gold is 1370-90 as long as gold is trading above the main support level.
Never risk more then 2% of your total 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