Good Evening Forex Friends
We were expecting upward movement yesterday with first target 1237-41.Metal Give us new high at 1243.Those who follow my analysis yesterday can close position and wait for the better price to jump in again.I am sharing different time frame chart analysis to give my technical view about gold.Please go through the below analysis.
Daily Gold Analysis
Gold closing yesterday candle stick was indicating bullish pressure may hold the market.Gold is in a correction phase now.This correction may end at 1226 or 1213 level.Gold major support remains the same 1191-93.Movement and daily closing below main support will invalidate our bullish bias.We may buy gold again from first support or from the better price 1220-21 with invalidation below main support.I have mention support and resistance area in the chart below.
4 Hour Chart Analysis
We can see clear resistance around 1239-43 area in 4 hour time frame chart.We have two different thoughts in 4 hour time frame.If gold follow the support and move lower we will jump in the market from the support area of 4 hour time frame.If gold break the resistance and close above 1243 in 4 hour time frame we will buy gold after breaking the resistance.My suggestion is wait to wait for confirmation either it will touch the support area or break the resistance.I have mention buying zone and resistance area in a chart below with invalidation points.
Note : if gold break its resistance then next target may 1261-63 and 1277-81 in extension.
Longer term target for gold is 1370-90 as long as gold is above the invalidation point in weekly chart.
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