The market looks overbought. The price broke the uptrend line and dropped to 1200.00 support level. In this zone we get a reversal signal confirmed by RSI and a candlestick pattern. Gold market is ready to correct the previous falling and move upward to the uptrend line at least. This line will act as a new resistance and it will be able to stop bulls and push the price down to 1200.00 and lower support levels. When the price broke the uptrend line, it was a trend reversal signal. Now we should be ready to see a sideway movement or a new downtrend, if the market can't form a swing high above the previous one.
Signals from Indicators: - RSI confirms the price reversal in the oversold zone - MACD histogram supports the upward movement - MACD lines confirm the downward movement but at the same time they are below the signal line. It will be a good bullish signal when these lines start upward movement - DMI is bearish and ADX line confirms the strength of bears.
How to trade: - short/medium term buy trades based on signals from the weekly and lower timeframes.
Comment
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The market looks oversold! Thanks @KimSopheakrakboth for correcting me )
@DLavrov, you're welcome man! Keep up the good work!
FxTicks
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ICFX
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My analysis agree with yours -
khalid252
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So from know buy to 1240 ?
Thank you
DLavrov
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@khalid252, as we don't have huge space for upward movement, probably the market bounces from 1260.00-1270.00 zone, the entry level should be at 1220.00 level. Just don't forget about stop orders and proper money management. The market can go upward but it does not mean that the market must do it.