GOLD has a direction relation with the US inflation. Considerably, gold fell from the top recently after the news surged it. As the move has been corrected towards the bearish side, we need to asses what the market may do now. 

On a higher timeframe, market is still bullish. At the support level, it will create a higher low if price actions denotes the formation of a bullish pinbar or engulfing. We will take a long position from this support level. 

The golden retracement level of 75-78.6% aligns with the support level and is a strong level for the GOLD to go up. 

The support trendline also falls in the confluence of the support and the retracement level. This will give us a third confirmation for the market to go up.

EMA's have a bearish death cross and right now, market just breached the EMA 200, moving towards the EMA 50. Apparently, it does not seem that the EMA 50 will fall in line with the support level. Therefore, we might see a break of this level to tap the support.

RSI is at 46 and CCI is at 18. There is a difference on sides with the oscillators. This means, we will have to wait for the RSI to be in the over-sold level or close the H4 candle above the 50 neutralized level. 

Gold buys from 1751

Oct 17 2021

2