The premium supply/resistance level lies on the 1790 price point. On higher time frames, Gold is bearish, where as on Daily it is bullish. What H4 denotes is that market is still bearish until we break the 1890 level. Once its broken, then we will start looking for buys. Other than this, market have been forming LL's and yet, awaits to form its LH. Once the LH is confirmed at the resistance with a bearish price action, we will take the short.

Gold is moving in an ascending channel. The resistance trendline has been tapped at the once and awaits to be tapped the second time. The second tap is in confluence with the resistance level. The support trendline, it needs to be breached in order to continue its bearish momentum. The trendline will induce breakout sells of the trendline.

At the resistance level, the golden retracement area of 75-78.6% totally overlaps the level. This gives us a solid confirmation and another edge/factor for the market to throttle down.

The EMA's are still in a bearish death cross but have been broken towards the bullish side. As per our plan, the EMA's don't stand on any of the support levels where we can book profits. The best bet for the EMA's in this trading plan would be the EMA's breakout sells.

RSI is at 61 and CCI is at 77. We will wait for over bought situation for the oscillators to add as a factor for the shorts on Gold. 

1:5 risk to reward Gold shorts

Oct 20 2021

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