Gold Trend Reversal

The market dropped to 1210.00 level and bounced. We got a bullish divergence formed by price, RSI and MACD histogram. It is a trend reversal signal. We can expect that price will move upward and try to pass through MA100. This resistance line will be important for our future trades. If the market bounces from MA100, we'll have a sell signal and possible downward movement to 1200.00 support level. If price breaks MA100, we'll get a strong confirmation of trend reversal. MACD and DMI will have to support upward movement and the breakout. There is one more signal which confirms trend reversal. The new highs and lows are higher the previous. It's a confirmation for upward movement based on the simple rules of Technical analysis. If the market moves above MA100 and breaks 1240.00 resistance level, we'll have buy opportunity with profit targets at 1260.00 and 1290.00 resistance levels.