Good Afternoon Gold Lovers
Gold is trading in a range of 1227-1235 and forming a bearish flag pattern in 1 hour time frame chart.It gives more confidence to our bearish thoughts.I am sharing two different time frame technical chart analysis to give a better logic why i am bearish in gold.Please have a look.
Daily Time Frame Chart Analysis
Gold gives reversal signals from its major resistance level and moving lower since 2 days.Minor support is at 1224-25.I am looking for a break of this minor support to get the target 1211-15 level and 1191-93 in extension.Major resistance become 1245-51 area now and movement with closing in daily time frame chart above 1255-60 will invalidate my bearish thoughts.I mention resistance and the next support area in the chart below.
After break of rising support we can see clear bearish flag pattern in 1 hour time frame chart.Please keep in mind bearish flag indicating continios in a trend and we may see gold 1211-15 area very soon.Movement above the resistance that was previous rising support invalidate our bearish concept.Please adjust your stoploss above the resistance level.
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Mati Ur Rehman
Gold Analyst @ dailygoldanalysis.com