Gold: Strong Uptrend Vs Strong Reversal Signal

About the Gold market based on the daily chart I wrote yesterday. You can find this post in the related ideas. It will be good if you read it in order to see the whole picture.

In spite of a new high, I still follow the same idea that the market is overbought, and it will correct the previous upward movement. We have only news, which pushes the market higher and higher. Fundamental Analysis supports the uptrend and explains the new local high. But Technical Analysis gives more and more bearish signals.

Today, we can see that the 4H chart gives us a trend reversal signal. It is based on a bearish divergence. I don't think that it will be a good idea to open sell trades right now, as the market can move higher. But this trend reversal signal can be used to fix profit from long trades.

If you missed buy opportunities from 1450.00 and 1500.00 zone, you should wait for the correction to the trend line and SMAs. It will be a good idea to open long trades in the direction of the main uptrend, but we should do it after the correction.