Gold - The Correction Must Be Good for Buying

The market made a good upward movement. Now the price is at 1325.00 resistance level and the price action in this zone is very important. Probably, we will get a candle like doji, and it will tell us about a possible reversal. It will be logical to correct the previous upward movement. We have RSI in the overbought zone which will confirm the price reversal from the resistance. If so, the correction movement should be used for getting a better entry level for buying.

If the price continues the downward movement, the target zone should be between 1300.00 and 1285.00 support levels. Reversal signals from this zone will be good for opening long positions with stop orders below the uptrend line.

Also, if the price bounces from 1325.00 resistance, it will be possible to open short term sell trades based on the lower timeframes trying to catch the correction movement. But such type of trading will be risky as sell trades will be opened against the primary uptrend. It is better to wait for the price reversal from the support zone and trade in the direction of the primary trend.

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