Gold How to Trade
The price reached a weekly uptrend line. Now we have to keep an eye on the price action in this zone in order to catch a new price movement in time. As the price is at the strong support line, we should be ready to see a price reversal. RSI is going to confirm a price reversal in the oversold zone. Long trades can be opened based on confirmed reversal signals on lower time frames or based on a breakout above 1300.00 resistance level and the signal line on the daily time frame. The zone between 1370.00 and 1350.00 resistance levels can be a profit target for long trades.
If we look at MACD and DMI, these indicators are bearish . We should be ready to join to a downward movement, if the price breaks the weekly uptrend line. The market will be able to reach 1250.00 support level and the 2nd weekly uptrend line. These support zones can be used as profit targets for short trades.
Source: TW DLavrov