Gold: False Breakout?

The Gold market is hot now, and that's why we should focus on it.

I wrote about Gold yesterday, and you can find that post in the related ideas. Today, I would like to talk about a possible reversal in spite of a breakout above 1558.00 resistance.

We can see that the daily chart gives us a reversal candlestick pattern. RSI is going to reverse in the overbought zone, and it will provide a solid bearish signal. MACD and DMI support the strength of buyers and the upward movement, but this situation can be changed. If we get a bearish candle, these indicators also will provide us bearish signals.

We must be ready to see a fake breakout. Today we can see that the market forms a doji candle. It tells us about consolidation or a reversal. I would like to use the High and Low price of the previous candle to confirm the further direction. If the price breaks below 1558.00 and the Low price, it will confirm the downward movement. If the price breaks the High price at 1590.00, it will confirm the further upward movement. Yes, it can be like this as well. If the market gets support from news, it will be possible to see a continuation of the upward movement. But buying based on a breakout above 1590.00 won't be a smart idea.
If you want to buy Gold, it will be better to wait for a pullback to the zone at the uptrend line and SMAs and use reversal signals. It will be more logical, and it will allow joining the uptrend after a correction movement.