Good Evening Forex Friends
Yesterday analysis was expecting a hammer closing in daily chart.This is what happen and market close at 1220-21 level.We were expecting a downward movement before a bounce.Market give a low 1215 today and bounce towards 1224-25.If gold move above 1226 , then we may see gold at 1237 and 1249 in extension.I am sharing different time frame chart analysis to give my view.Please have a look below.
Daily Chart Analysis
Current market price is at 1224-25 level.If gold move above 1226 then the next target may 1237 and 1249 in extension.Next major resistance in daily time frame is at 127071-71 level.Gold minor support become 1214-15 now and the main support remains the same 1191-93.My suggest is to wait for break of 1224-25 and buy from the break with target 1237 and 1249.Invalidation of this short term trade is at 1213.
4 hour time frame chart
I mention buying zone in previous analysis.Gold bounce 3 4 point above from the buying zone and heading towards the first target that was 1237.Movement above 1226 will give more confidence to this short term bullish trade.Please enter the market after break of 1226.I mention target and support level in a chart below.
Yesterday 4 Hour Chart
Trade Recommendations :
Enter the market if gold break and close above 1226 in 4 hour chart
Target 1 : 1237 ( Close half position and move stoploss to entry point )
Target 2 : 1249 ( Close Full Position )
If gold fail to break 1226 in 4 hour chart.Wait for the better price to enter.
Alternate buy limit
Buy from 1211-1213
More Buy From 1191-95
Stoploss below 1187
Take Profit 1 : 1237 ( Close half position and move stoploss to entry point )
Take Profit 2 : 1249 ( Close full position )
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.
Mati Ur Rehmany
Gold Analyst @ forex.today