I like to see a bullish/bearish engulfing candle when a uptrend/downtrend is over. Gold is in weekly downtrend and if it was the last leg down we didn't see very impulsive buying. Gold is in a daily uptrend and it looks like it will be up until we hit the weekly downtrend-line it's possible we might break out but that could also be another shorting opportunity for another leg down. Scenario 1 is my more near-term bullish case scenario and scenario 2 is my slightly longer case scenario. If we reject off the weekly downtrend line that is an objective shorting opportunity with a stop a little above the downtrend line. If we break it that is an objective buying opportunity with a stop below the broken downtrend line.