Gold: Buyers Are Strong
The local resistance zone at 1592.85 was broken, and the price reached the previous market high. It is a new resistance zone, and the price action here will show us further direction.
As it is the resistance, we should be ready to see the price reversal. But looking at the daily chart now, it looks like buyers will be able to make a new high.
If the close price of the day is at the current level, we will get bullish signals from MACD lines and histogram. RSI is also bullish. DMI is bullish and confirms trend market conditions. ADX line moves upward, confirming the strength of buyers. Bollinger Bands start a movement from each other after the short consolidation. You can find the same pattern in December of 2019. After the same consolidation, the price moved upward.
I still think that we need to search for sell opportunities in this market as for buying we are far from a good entry point. We could buy based on a reversal signal from 1558.00 and SMA20. If you missed that buy opportunity, buying above 1612.00 will be a mistake. It will be better to wait for a correction wave and use it for selling. And after the correction, open long positions in the direction of the main trend from SMAs and supports.
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.
As it is the resistance, we should be ready to see the price reversal. But looking at the daily chart now, it looks like buyers will be able to make a new high.
If the close price of the day is at the current level, we will get bullish signals from MACD lines and histogram. RSI is also bullish. DMI is bullish and confirms trend market conditions. ADX line moves upward, confirming the strength of buyers. Bollinger Bands start a movement from each other after the short consolidation. You can find the same pattern in December of 2019. After the same consolidation, the price moved upward.
I still think that we need to search for sell opportunities in this market as for buying we are far from a good entry point. We could buy based on a reversal signal from 1558.00 and SMA20. If you missed that buy opportunity, buying above 1612.00 will be a mistake. It will be better to wait for a correction wave and use it for selling. And after the correction, open long positions in the direction of the main trend from SMAs and supports.
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.
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