Russian Ukrainian conflict persists. With the conflict, the risk tones are softer as the negotiations continue. Meanwhile, on the gold, technically, we are waiting for short position as per the structure.

Gold made a major move up towards the 1970 level and reversed from there, having a daily move from 1915 to 1950. Market is in a ziczac form right now and sometimes the pullbacks are up thrusted taking us out. From the resistance level of 1950, we have been sellers on gold. As the market continues to make a bearish leg downwards, we continue to look for retracements on shorter time frames to take short positions. Once we see prices at the 1930 level, we will short once again after seeing the bearish price action being formed.

The bearish leg to form lower low is impended towards the bottom, which also fills the gap.

Currently, we do not see an accurate drawing of the descending trendline, hence, there is no indication of the trendline in H4. The ascending trendline is still below the market and needs to be broken or retested for the market to either go down, or re-bounce.

The bearish retracement level overlaps with the resistance level and has the confluence with the golden area of 75-78.6%. Although market did not completely tap and reject the area, it started its downward move mere below the 75 level.

Both the EMA’s are bullish and are below the current market prices. The retest of the EMA’s are our potential profit targets. It should be noted that EMA’s are still in a bearish death cross.

RSI and CCI, both are near their neutralized oscillator levels. These levels are in confluence with the bearish momentum. At the resistance level of 1930, we need to see either an over bought region, forming a bearish divergence, or, oscillators sliding down towards the neutralized levels to continue gearing down.

The conditions in which markets are operating currently, we have to be very careful with gold. Any war news, can completely go opposite of our analysis.

What do we have on gold?

Mar 02 2022

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