Gold Market Overview

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.

Komentarz:

The market looks oversold! Thanks @KimSopheakrakboth for correcting me )