XAUUSD, Weekly, Daily, 4 Hour Overview
|The bounce was expected from the price 1215-16 in our previous forecast.Gold move exactly as per the expectations and bounce from 1216 towards 1243 but fail to break the resistance of 1243-45.
Rejection twice from the resistance indicating a confusion between bulls and bears.I am sharing my technical thoughts in 3 different time frame charts below.
Weekly Overview
Weekly closing looks like "Doji" which is one of the earliest signals of reversal.Gold could move lower to retest weekly support before a new high. The minimum correction level is 1219-21 and maximum at 1201.Movement below 1230 will give more confidence. The overall trend is still bullish, and longer term gold target is 1271-75 which is also the weekly trend resistance.
Alternately: if gold fail to give reversal, move higher and close above 1249-51 in a weekly candle. This will be the confirmation of trend continuation and could take gold directly towards 1271-75 area.
Weekly Gold Chart
Daily Gold over View
The double top at resistance level was indicating the bearish move for next couple of days.Today closing below 1230 will confirm the bearish thoughts.The minimum target could 1219-21 and maximum 1201-1197 as per the daily support levels.The overall daily trend is still bullish, and out longer term target will remain the same 1271-75.We will look for the best prices to jump in for the expected bullish rally.Please have a look at the daily chart below to get the trade idea.
Daily Gold Chart
4 Hour Overview The yellow metal in 4-hour chart forming a double top pattern.The best way to confirm the double top pattern is to wait for the break off bottom line.The minimum support is at 1231.Movement and closing below 1230-31 i n 4-hour time frame will give confidence for short-term bearish thoughts.The next bearish target could be 1219-21 and 1201 in the case of extension.
Alternately if gold move high and break the resistance of double top, it will be the earliest indication to change the short-term bearish thoughts.
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