Good Morning Forex Friends
“Trend is your friend”
Gold breaks its longer time resistance and close above the descending channel confirms us the longer term descending channel trend is change now and we will ride with the trend now.I am sharing different time frame charts to give my idea.
Daily Time Frame Chart
Clear break above trend line around 1146-47 confirms and indicating a trend change from bearish to bullish.Now the resistance become support and we will look for the buy entry from the dip.Current market price is 1153-54.Gold next target may 1171-72 next week most probably.Please keep in mind when ever the descending channel break , most of the time price move exact the size of the channel.So if we look the size of channel , Gold longer term target may above 1213-17.Break and closing daily chart below the support line will indicate the fake break and invalidate this analysis.
4 Hour time Frame Chart
We can see the clear break in 4 hour chart , We will see for the correction and look for buy entry from the support of channel around 1143-47.
Buy from the support area around 1143-47
stoploss below 1131
Never risk more then 2% of your total capital and 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 happy trading
Mati Ur Rehman
Gold Analyst @ Forex.Today