Gold: Market Review and How to Trade

The market gave us a reversal candlestick pattern with the market high at 1690.00 level. RSI is going to confirm the price reversal. The same signal we will be able to get from MACD histogram. DMI confirms the main uptrend and the strength of buyers. MACD lines also give us a bullish signal.

All these bullish signals and the fundamental factors support the continuation of the main uptrend if we talk about the medium term. But at the same time, the market looks overbought, and it is possible to expect a short term correction. The previous resistance could not stop the upward movement, probable the zone at 1700.00 can do this.

It is possible to search for sell signals using the hourly charts. Good entry points should be as close to 1690.00 as possible. It means we will need a pullback to the resistance. The main target for sellers should be 1612.00 support. Stop orders must be placed above 1700.00 round number level.

The main is going to keep the uptrend, and it means we will have to search for buy signals as well. It will be good to wait for the correction movement to SMA50, SMA10, and support levels. Reversal signals from these lines and levels will be used for buying.

If the price breaks 1690.00 resistance without the correction, I would like to skip this signal as buying in the overbought market won't be a good idea.



Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.