Gold: Risky Buy Opportunity

I wrote about Gold market based on the daily chart in the previous post. You can find it in the related ideas below this post.

If we look at the 4H timeframe, we can get a setup that allows us to buy. But if you decide to open long trades based on a price reversal from the support zone, you must be very careful, use stop-loss orders and understand why buying is risky.

Yes, the price bounced from the uptrend line. RSI confirms the price reversal. MACD histogram gives us a bullish signal. DMI does not confirm the strength of sellers. We have reasons to buy with stop orders below 1453.00 and the main profit target at the resistance zone between SMA200 and 1480.00.

But why buying is risky now?
If you look at the 4H - we have a downtrend. If we open long positions, we will act against the main trend. For the upward movement, the price will have to break SMA100, which is a strong resistance line. The daily timeframe tells us about the further downward movement.

Also, we don't have the room for the upward movement, and our risk/reward ratio won't be so good.

I want to have more signals and better picture for buying or selling. For now, I prefer to stay away and watch for the price action in important zones.