Gold: Market Overview and How to Trade

The main trend is bullish if we talk about the long period and weekly timeframe. The local trend is bearish, and the price stays below the trend line. The price could not break 1450.00 support zone, and for us, this zone is important now. In order to get a signal confirming the further falling, the market will have to drop below 1450.00, and there will be enough space for the downward movement. You can see the main trend line from the weekly chart, which will be the target for sellers.

If we talk about the continuation of the uptrend, we need to get a breakout above the downtrend line and 1500.00 resistance. If so, we should be ready to see an attempt to reach the previous high at 1560.00, which will be the target for buyers.

Signals from indicators:
- RSI is bullish, and it confirmed the reversal from 1450.00 support
- MACD lines provide us another bullish signal
- MACD histogram also supports the upward movement
- DMI is still bearish, and ADX line is at 20 level which tells us about range market conditions

Based on the signals from indicators, we can't say that the market is going to move upward or downward right now. It looks more bullish, but at the same time, the sideways movement and the breakout below 1450.00 will be possible too.

How to trade:
If the price moves back to 1450.00 support, it will be possible to buy based on a reversal signal or sell based on a breakout signal.
If the price reaches the downtrend line, it will be possible to sell from this zone following a reversal signal or buy following a breakout signal.