Good Morning Gold Riders
Finally gold break its resistance we were waiting from couple of days.We are in a trade and got some positive points.I am sharing different time frame chart analysis to get idea for next setup.
Daily Time Frame Chart
Gold has break its resistance and yesterday closing above the resistance confirms the break.Now resistance will act as a support.We are already in a trade.I am expecting a minimum target 1171-73 and longer term target may 1301-1303.I mention support and target area in a chart below.Please have a look.
4 Hour Time Frame Chart
We can see clear break of symmetric triangle in 4 hour chart below.The size of triangle was 40 to 45 Points.When ever a triangle break we consider a target calculating the size of triangle.So next target may 1301-1303.Now resistance become support and we will have to set our stoploss below the support level in 4 hour chart.I am sharing trade recommendation below to get some risk free rides.
Trade Recommendations :
We are already in a trade from 1255-57.Gold hit 1268 and current market price is 1261-62.I suggest you to remain in tarde.First target was 1271-73
Clos one half position at 1271-73 and move stop loss to entry point.
Close one half position at 1291-93
Close full position at 1301-1303
Movement and closing below the support line that was previous resistance in 4 hour chart will invalidate this break.So set your stop loss losses accordingly.
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