Rule number 1 before you trade, look at the big picture !
Most people would never use a monthly chart (you should), so the next best thing is a weekly chart.
What does it tell us ? (Looking at the GLD, Gold ETF)
A) Broken trend ; Only use this reliable trend since its the only one that connects the low with the highest low prior to the highest high !
B) Clear lower highs (Gold is taking a rest)
C) Not perfect, but clear triple support level
We are still in an uptrend, global economy seems to improve, but fear is still there, so do not expect gold to head down ...
Probability favors a "long" channel .... very hard to trade ....
How about just staying out ? Can you do that ?
Let's imagine you can NOT stay out, you feel the urge to "pull" the buy trigger, your fingers and your brain cannot handle the pain of NOT acting ....
Buy, but use the key support as your stop
Add positions (pyramid up only) as price rises