Gold: New Bearish Signals in the Bullish Market.

The market stays overbought and looks more bearish in the short term. I wrote about the strong reversal signal based on the bearish divergence. This post you can find in the related ideas. In spite of the new upward movement to 1560.00 resistance level, that idea is still relevant to the current market conditions.

What do we have now?

The price reversed from 1560.00 one more time. RSI is going to confirm the price reversal. MACD lines and the histogram will be able to confirm a possible downward movement. For this, the market will need to give us a new bearish candle. We have to wait for the close price.

If the price keeps falling, it will be possible to think about shorting. For buying the levels are not good. The attempt to make profit using a correction movement looks much more interesting. For this, we have to search for sell opportunities.

We will have to wait for the breakout below 1550.00 support level and the uptrend line. It will give us the additional signal confirming that the market is ready to move lower.

Stop orders for sell trades must be placed above 1560.00 swing high. The market has space for the falling, and profit targets can be placed at the support levels and SMA with 100 period.

The market keeps the main uptrend, and it looks solid from FA point of view in the long run. For buying, it will be good to use reversal signals after the correction movement.

Yorum:

Well, good drop! If the close price is below the uptrend line and we get such a good bearish candle, it will be a good signal confirming the further downward movement. Let's watch for the market.

Yorum:

The price keeps falling. We got the confirmation from indicators that the market is going to move lower. The breakout below 1500.00 will give an additional bearish signal and confirm the strength of sellers.