Gold has been super bearish and now it has tapped at a strong support level of higher time frames. The daily and weekly time frame supports usually bounce gold with massive force. 

The trend right now on gold is bearish. As the structure is bearish, there has to be some point for gold to take a pullback. Apparently, this current support level seems to be that halting factor. The market continued forming LL's and LH's. With the passage of bearish impulses, the bearish pressure seemed to be taming off. Now that gold is at support, we will take the risk for the long positions. 

There is a descending penant formed on gold. If the resistance trendline is pierced, we can anticipate the breakout buys for the continuation of the bullish pressure. The support trendline has been tapped and rejected by the price action. 

The golden area retracement of 75 and 78.6% perfectly aligns with the support level. The retracements are of two kinds. One is a major retracement. The other is a minor retracement within the major retracement. The confluence for both has a very strong effect on the market. This adds to our confluence of support and trendline.

Both the EMA's are in a bearish death cross. The EMA's have been tested various times after the breakouts. Therefore, if the bullish pressure is built, we may see a break through of these EMA's.

Both the oscillators have divergence buys in parallel to the prices on the chart. These divergences will push the market up. 

The setup on gold has almost every factor aligned which we take into consideration. The only factor to be vary of is that the trend is still bearish and we need to keep a strict eye if market tries to break the support level.

Gold bullish move to be expected

Vasl Capital

Sep 29 2021

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