Price was moving near to resistance zone in gold trading and downward movement was expected in friday session.Price move between small range in friday and close near to its resistance in previous week session.Today market open with a gap which is clear indicating rejection from resistance and price is moving towards our target level.It gives confidence to our bearish thoughts for couple of next days.i am sharing 3 different time frame gold chart analysis to give my logical view regarding gold next move.Please go through the gold analysis written below.
Before reading today gold trading analysis, Please have a look in a previous couple of analysis to see how we trade gold.
Fx Trading XAU/USD Gold Price 4th Nov 2016
XAU/USD Gold Price Technical Analysis 3rd Nov 2016
Weekly Gold Trading Overview
In our previous week gold forecast, we were expecting a reversal from the resistance area, Gold close near to its resistance in previous weekly candle and reverse back in today opening session which gives confidence to our bearish thoughts.Expecting more downward movement technically. Weekly Extreme support is at 1247-41 area, but we will look for daily and 4 hour gold charts to get the closest picture.I share weekly chart once in a week just to give the weekly overview to understand the trend movement.Please have a look in a weekly chart below.
Weekly Gold Chart
Daily Gold Trading Analysis
After reversal from the resistance, gold is moving towards its next support level which is around 1281 and 1273 in extension.1273-74 will be the watching area to predict possible next move for gold.If gold break its daily support in daily time frame chart, it will be earliest confirmation for more bearish move.Where as bounce from the support zone may lead gold towards new high at trend resistance level which is 1321-25.Please have a look in a daily chart below, i have mention support and resistance areas with invalidation points.
Daily Gold Trading Chart
Gold Trading Hour Analysis
Houly analysis help us to get the clear and immidiate entry or exit level in our gold analysis.If you see the previous 4 hour charts, you will get the idea of accuracy in our hourly charts.Gold move exactly according to our expectations, Nearest support is at 1285, if gold break the support in hourly time frame then the next support is around 1273-77 , which will be the watching area to see further downside or bounce.Please have a look in 4 hour time frame chart below, i have mention possible next movement diagram with support and resistance areas.
4 Hour Gold Chart
Gold Support & Resistance
Hourly Support : (1) 1285 (2) 1273
-Hourly Resistance : 1307-09
Daily Support : 1273-77
Daily Resistance 1307-09
Note: Never risk more then 2% of your account capital 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 and help us to improve.
Wish you good luck and happy trading
Mati Ur Rehman
Gold Analyst @ Dailygoldanalysis.com
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