Previous setup in Gold was bullish confluence zone near 1050$.
Since then, the oversold precious metal exploded higher and broke out of its downtrend, closing above the 200 SMA line and providing a longer term bullish signal (as projected in this blog post - goo.gl/YA0mZ3)
$XAUUSD reached the first out of two major daily structure zones - 1165-1180$ and 1190-1200$
Buying Gold following such a rally doesn't make sense, unless you are an investor that intends to hold positions over long period of time (even in such case, I would advise to try and wait for a better entry).
One of the two resistance zones mentioned above can turn out to be a reversal zone that will lead to a pullback towards lower levels such as 1130$ and 1150$
Since then, the oversold precious metal exploded higher and broke out of its downtrend, closing above the 200 SMA line and providing a longer term bullish signal (as projected in this blog post - goo.gl/YA0mZ3)
$XAUUSD reached the first out of two major daily structure zones - 1165-1180$ and 1190-1200$
Buying Gold following such a rally doesn't make sense, unless you are an investor that intends to hold positions over long period of time (even in such case, I would advise to try and wait for a better entry).
One of the two resistance zones mentioned above can turn out to be a reversal zone that will lead to a pullback towards lower levels such as 1130$ and 1150$