Gold: Possible Trend Reversal

The market is going to offer us Head & Shoulders chart pattern, which belongs to a trend reversal group of patterns. But today, I would like to talk about Gold market using other tools.

The market formed a new swing high which is lower than the previous one. It means we can use it for drawing a new downtrend line. For us, this line should be important, because the market moved a lot upward and it can change the trend soon. If the price makes a new swing low, below the previous one, we will get the 1st signal telling us about a new downtrend.

Now the price stays at the support zone formed by the uptrend line, 1500.00 support and SMA50. If the market can drop below this zone and the price moves below the local swing low, it will be a new trading opportunity. The market will give us signals supporting the further downward movement. It will be possible to sell based on the breakout signal.

If we talk about possible buy opportunities, it is better to search them using the minutes and hourly charts, based on a possible reversal signal from the daily chart. The main profit target should be the downtrend line. As for confirmation the uptrend based on the daily chart, I would like to see the breakout above the downtrend line and buy following this breakout.

Do you believe that the market moves higher? What are the reasons for such upward movement from your point of view? Share your ideas below this post. I will be grateful if you support my work by your likes. Thank you!