Gold: Bullish Setup from SMA200
Gold/U.S. Dollar FX:XAUUSD
In the daily chart , the price moved above SMA200. It is a signal that the market is going to continue the uptrend. A new higher swing low supports this idea.
RSI confirmed the price reversal. The same goes for MACD histogram. We have a bullish setup that can be used for buying. You can see an example of a possible long trade. Of course, it will be better to wait for the breakout above the local downtrend line and 1900$ resistance. But if we wait for the breakout, our entry point will be far from the stop. It won’t make our trade more attractive. That’s why it makes sense to scale in or use the daily chart and such risky trade.
If you want to have more trade opportunities for buying, move to the hourly timeframes.
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.
Source: TW DLavrov