Gold - Possible Upward Movement?

The daily chart tells us that the market is in the uptrend and now we have a correction wave. The price bounced from the resistance and gave us a double bearish divergence - the trend reversal signal. I'm not sure that we have to talk about the new bearish trend for Gold in the long run, I think the correction movement to the main uptrend line will be more logical in the bullish structure. For more details, please read other posts about the Gold market. You can find them in the related ideas.

As for the short term price movements, we can use the 1H chart. The price bounces from the local support at 1280.00 level. We have the downtrend in this timeframe and the bullish divergence - a new trend reversal signal. It means that we should be ready to see the upward movement to 1300.00 resistance level. This level is also very important for further market movements. If the price bounced, the market would be able to move lower as we have some free space for the falling on the higher timeframes. If the price breaks 1300.00 resistance, it will mean that probably the correction on the daily timeframe is over and we will see the continuation of the main uptrend.

Indicators give us the following signals:
- RSI confirmed the price reversal from the support
- MACD supports the upward movement
- DMI is bearish with a falling ADX line. It means the bears are not so strong.

It's possible to buy with stops below 1280.00 and profit at 1300.00, but the trades will be with high risk. It's better to wait for more solid support zones from the higher timeframes and open long positions using reversal signals from that zones.



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