Gold - What's New

The previous post was about the forming bullish divergence and possible correction movement. You can find it in the related ideas. Please, read the post to understand the whole picture better.

The market formed the double bearish divergence and it includes MACD histogram and lines now, but not only RSI. The price reached a support zone formed by the support level 1325.00, SMA20 and the uptrend line. If the price breaks this zone, it will be a good signal confirming the correction movement. Targets for bears are SMA50, SMA100 and the main uptrend line.

As the market stays bullish and we have the strong uptrend, short trades should be opened based on the breakout signal and on lower timeframes. These trades will be risky as we have to trade against the main direction, but if correction is deep, it will allow making additional profit. As for the best trades, they will be done based on the reversal signals from SMA100 and the uptrend line using the daily and lower timeframes.
Buying from SMA50 also seems rather risky as the market will be able to continue falling after the breakout the strong support zone. But if there are solid signals in lower timeframes, opening buy trades for short run also will be possible.