Gold How to Trade

The market corrects the previous upward movement. Now the price is at SMA100 which is a strong support level. If the price bounces from this line, probably we'll see a new upward movement. In order to catch a new wave of the uptrend, we can place pending orders for buy above 1285.00 level. Stop orders must be place below the swing low. Profit targets should be at the resistance levels. We have only MACD histogram which supports upward movement. That's why we also must be ready to see a breakout below SMA100 with further downward movement. If so, the next reversal zone will be at the weekly uptrend line. If the price bounces from this zone, we'll open buy trades based on a reversal signal. Entry level will be above the high of the signal candle. Stop orders should be placed below the swing low and the uptrend line. Profit targets will be the resistance levels.